Tax Accounting to Biglaw tax: Am I crazy? Forum

[dabigchina]

...

[ph14]

I voted go to law school. Tough call and a hard decision, but I think you will earn more over the course of your lifetime as a tax attorney rather than a tax consultant. I imagine with your tax background it wouldn't be too difficult to obtain a tax position at a law firm, provided you have solid grades.

The big issues are: (1) 3 more years of long distance with the girlfriend will be tough. (2) A roughly ~$180k opportunity cost. But, a big factor in favor is that you will have less than 50k loans if at all. I imagine that over the long run you would be better off financially by going to law school, assuming you do decently well in school.

But this is a really personal decision and you should think about whether you want to be a lawyer or a tax consultant. I wanted to be a lawyer, so I went to law school. I imagine being a tax lawyer could be pretty interesting, but I don't know what being a tax consultant is like.

If you did poorly in law school, could you go back to tax consulting?

[AntipodeanPhil]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

[dabigchina]

I voted go to law school. Tough call and a hard decision, but I think you will earn more over the course of your lifetime as a tax attorney rather than a tax consultant. I imagine with your tax background it wouldn't be too difficult to obtain a tax position at a law firm, provided you have solid grades.

The big issues are: (1) 3 more years of long distance with the girlfriend will be tough. (2) A roughly ~$180k opportunity cost. But, a big factor in favor is that you will have less than 50k loans if at all. I imagine that over the long run you would be better off financially by going to law school, assuming you do decently well in school.

But this is a really personal decision and you should think about whether you want to be a lawyer or a tax consultant. I wanted to be a lawyer, so I went to law school. I imagine being a tax lawyer could be pretty interesting, but I don't know what being a tax consultant is like.

If you did poorly in law school, could you go back to tax consulting?

I definitely could but I wouldn't feel too great about getting a 20-30k pay bump after 3 years of school and hundreds of thousands of dollars in family financial resources. Shitlaw will never be in the cards but going back to big4 is not much better in my book.

[ph14]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

"Local t14 are pretty much out of the question because of my stats." I take that to mean he's looking at a school below the T14.

[ph14]

I voted go to law school. Tough call and a hard decision, but I think you will earn more over the course of your lifetime as a tax attorney rather than a tax consultant. I imagine with your tax background it wouldn't be too difficult to obtain a tax position at a law firm, provided you have solid grades.

The big issues are: (1) 3 more years of long distance with the girlfriend will be tough. (2) A roughly ~$180k opportunity cost. But, a big factor in favor is that you will have less than 50k loans if at all. I imagine that over the long run you would be better off financially by going to law school, assuming you do decently well in school.

But this is a really personal decision and you should think about whether you want to be a lawyer or a tax consultant. I wanted to be a lawyer, so I went to law school. I imagine being a tax lawyer could be pretty interesting, but I don't know what being a tax consultant is like.

If you did poorly in law school, could you go back to tax consulting?

I definitely could but I wouldn't feel too great about getting a 20-30k pay bump after 3 years of school and hundreds of thousands of dollars in family financial resources. Shitlaw will never be in the cards but going back to big4 is not much better in my book.

Well the idea would be to drop out if you did poorly after your 1st year. It would surely suck but it would also be a $60k opportunity cost and another $50k+ in tuition. A lot of money but a lot less than $200-300k. You should have a good idea of your employment prospects after your 1st year.

[AntipodeanPhil]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

"Local t14 are pretty much out of the question because of my stats." I take that to mean he's looking at a school below the T14.

Oh. I took it to mean that the local t14 are in the top half (e.g., he lives in MA). Maybe you're right.

[dabigchina]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

I was lucky enough to get a full ride + modest stipend to my undergrad so my college fund is still intact doing nothing in my parents' bank account. I am not sure if they would qualify as wealthy, but worst case scenario it would constitute maybe 25% of their net worth. They are also in their money making years and will not be retiring for another 10 years. Their retirement fund is solid but I anticipate having to help them out at retirement regardless. I would probably need to help them out more if I go sticker @ T14

[ph14]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

"Local t14 are pretty much out of the question because of my stats." I take that to mean he's looking at a school below the T14.

Oh. I took it to mean that the local t14 are in the top half (e.g., he lives in MA). Maybe you're right.

Your reading seems plausible too. I figured he would say HYS if he were living in MA. OP, can you clarify?

[dabigchina]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

"Local t14 are pretty much out of the question because of my stats." I take that to mean he's looking at a school below the T14.

Not at all. I meant to say if I am going to law school I am almost definitely going out of state.

[ph14]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

I was lucky enough to get a full ride + modest stipend to my undergrad so my college fund is still intact doing nothing in my parents' bank account. I am not sure if they would qualify as wealthy, but worst case scenario it would constitute maybe 25% of their net worth. They are also in their money making years and will not be retiring for another 10 years. Their retirement fund is solid but I anticipate having to help them out at retirement regardless. I would probably need to help them out more if I go sticker @ T14

The investment in human capital is probably worth it, in my opinion. It's a gift from your parents that will up your lifetime earning potential, probably not insignificantly.

[lecsa]

Stay. Your good exit options from biglaw tax are pretty much Big 4.

[dabigchina]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

"Local t14 are pretty much out of the question because of my stats." I take that to mean he's looking at a school below the T14.

Oh. I took it to mean that the local t14 are in the top half (e.g., he lives in MA). Maybe you're right.

Your reading seems plausible too. I figured he would say HYS if he were living in MA. OP, can you clarify?

...

[Theopliske8711]

Could you state your approximate GPA and LSAT? Have you maxed everything out?

[dabigchina]

Could you state your approximate GPA and LSAT? Have you maxed everything out?

Edited in OP

[ph14]

And I take it your SO's SA is in that same geographical area?

[dabigchina]

You say your parents would foot most the bill. Are they very wealthy, or would this be a hardship for them? If they're very wealthy or you get significant financial aid (which you might, since it's not need-based at the lower t14), then I would vote for law school. If you target tax biglaw, I definitely think your background would give you an advantage.

I would be interested in your thoughts on why tax law is more interesting/preferable to tax accounting.

Tax accounting involves a lot of compliance. 95% of our work involves either
1. Preparing tax returns (yes it sucks as much as it sounds)
2. Auditing financial statement disclosures involving tax expense (almost as bad as #1)

I'd like to help structure M&A transactions and actually save clients real money. My impression of tax law is this is more their domain than our's.

[AntipodeanPhil]

Stay. Your good exit options from biglaw tax are pretty much Big 4.

Wut? Associates who've left the tax practice group at my SA firm over the last ten years or so have gone: (1) in house, to clients; (2) to other big law firms; (3) to mid law firms, often as partners; and (4) to academia. A few have also left the profession or moved to another area of law.

[dabigchina]

And I take it your SO's SA is in that same geographical area?

Correct, and I'd like to make it back here after law school because of SO/quality of life reasons.

[sighsigh]

Uh, what do you see yourself gaining if you go into law?

It doesn't seem to be monetary gain, since you see yourself coming out of biglaw with the same salary options as you would accounting. The opportunity cost and money you spend (whether by your parents or you) on tuition more than make up for the increased biglaw pay.

It doesn't seem to be for a love of law (which I don't blame you for - even to a naive 0L being a tax associate doesn't sound all that glamorous).

Basically there are no pros for law in your OP - all the points are cons or neutrals.

[dabigchina]

Uh, what do you see yourself gaining if you go into law?

It doesn't seem to be monetary gain, since you see yourself coming out of biglaw with the same salary options as you would accounting. The opportunity cost and money you spend (whether by your parents or you) on tuition more than make up for the increased biglaw pay.

It doesn't seem to be for a love of law (which I don't blame you for - even to a naive 0L being a tax associate doesn't sound all that glamorous).

Basically there are no pros for law in your OP - all the points are cons or neutrals.

My endgame would be to be a tax director at a F500. Looking at their Bios most of them have legal backgrounds rather than accounting. Also, I'd like to do some work structuring M&A deals, which seems to be more the domain of attorneys.

[AntipodeanPhil]

Tax accounting involves a lot of compliance. 95% of our work involves either
1. Preparing tax returns (yes it sucks as much as it sounds)
2. Auditing financial statement disclosures involving tax expense (almost as bad as #1)

I'd like to help structure M&A transactions and actually save clients real money. My impression of tax law is this is more their domain than our's.

Yeah, that's definitely something tax lawyers do. At some big law firms, I think that's most of what the tax lawyers do (e.g., Wachtell). I haven't actually done any of it yet, but it sounds very interesting to me as well - structuring the transaction, telling the corporate lawyers what to do.

On that topic, I imagine your background would also be of value as a junior corporate associate -- due diligence, etc.

[dabigchina]

Tax accounting involves a lot of compliance. 95% of our work involves either
1. Preparing tax returns (yes it sucks as much as it sounds)
2. Auditing financial statement disclosures involving tax expense (almost as bad as #1)

I'd like to help structure M&A transactions and actually save clients real money. My impression of tax law is this is more their domain than our's.

Yeah, that's definitely something tax lawyers do. At some big law firms, I think that's most of what the tax lawyers do (e.g., Wachtell). I haven't actually done any of it yet, but it sounds very interesting to me as well - structuring the transaction, telling the corporate lawyers what to do.

On that topic, I imagine your background would also be of value as a junior corporate associate -- due diligence, etc.

Correct, but tax appeals to be because I have heard there are marginal advantages in quality of life for tax attorneys. Also, I find tax law kind of interesting on a weird level.

[ph14]

Tax accounting involves a lot of compliance. 95% of our work involves either
1. Preparing tax returns (yes it sucks as much as it sounds)
2. Auditing financial statement disclosures involving tax expense (almost as bad as #1)

I'd like to help structure M&A transactions and actually save clients real money. My impression of tax law is this is more their domain than our's.

Yeah, that's definitely something tax lawyers do. At some big law firms, I think that's most of what the tax lawyers do (e.g., Wachtell). I haven't actually done any of it yet, but it sounds very interesting to me as well - structuring the transaction, telling the corporate lawyers what to do.

On that topic, I imagine your background would also be of value as a junior corporate associate -- due diligence, etc.

Correct, but tax appeals to be because I have heard there are marginal advantages in quality of life for tax attorneys. Also, I find tax law kind of interesting on a weird level.

Tax life can be a little bit better QOL than litigation or especially transactional attorneys, but obviously it varies. I know a tax associate, formerly with a V10 firm, who told me he billed as many or more hours than many of the people in his class and that he spent more nights sleeping in his office than he could count. Plus, apparently, there are not a lot of fluff or easy hours in tax as compared to other practices (e.g., sitting in a deposition as a junior associate).

[dabigchina]

Tax accounting involves a lot of compliance. 95% of our work involves either
1. Preparing tax returns (yes it sucks as much as it sounds)
2. Auditing financial statement disclosures involving tax expense (almost as bad as #1)

I'd like to help structure M&A transactions and actually save clients real money. My impression of tax law is this is more their domain than our's.

Yeah, that's definitely something tax lawyers do. At some big law firms, I think that's most of what the tax lawyers do (e.g., Wachtell). I haven't actually done any of it yet, but it sounds very interesting to me as well - structuring the transaction, telling the corporate lawyers what to do.

On that topic, I imagine your background would also be of value as a junior corporate associate -- due diligence, etc.

Correct, but tax appeals to be because I have heard there are marginal advantages in quality of life for tax attorneys. Also, I find tax law kind of interesting on a weird level.

Tax life can be a little bit better QOL than litigation or especially transactional attorneys, but obviously it varies. I know a tax associate, formerly with a V10 firm, who told me he billed as many or more hours than many of the people in his class and that he spent more nights sleeping in his office than he could count. Plus, apparently, there are not a lot of fluff or easy hours in tax as compared to other practices (e.g., sitting in a deposition as a junior associate).

Do the tax attorneys you know generally like their jobs more/less than other attorneys you know.