From the Tax Law Practice Group: Massachusetts Changes Reference to Internal Revenue Code On September 3, Acting Governor Cellucci signed a bill which substantially revises Massachusetts personal income tax law. The Massachusetts personal income tax for the most part is based on Federal definitions of taxable income and on other important concepts from the Internal Revenue Code (the "Code"). However, Massachusetts law has for many years referred to the Code as of January 1, 1988. Now it refers to the Code as of January 1, 1998. Employment Law Update Charles Hotel in Harvard Square Cambridge, MA October 22, 1998 SEC Guidance on Year 2000 Disclosure For Publicly Traded Companies On July 29, 1998, the SEC issued a major interpretive release titled "Disclosure of Year 2000 Issues and Consequences by Public Companies, Investment Advisers, Investment Companies, and Municipal Securities Issuers." This release supersedes the SEC's previous Staff Legal Bulletin No. 5. Recent articles in the Boston Business Journal:   "Some cautionary words about the attorney-client privilege"    "Avoiding speed bumps on fast track to going public"   Insider View: Laura Steinberg "Just a few months ago, when the United States Supreme Court decided that Vince Foster's attorney-client privilege had survived his death, the business world and other legal services providers heaved a collective sigh of relief that the sanctity of this most basic privilege had been forcefully reaffirmed. Notwithstanding that recent decision, however, the attorney-client privilege can be much narrower than is commonly appreciated." Insider View: Den White "Fast-growing companies inevitably consider an initial public offering as a means of fueling their growth and creating liquidity for founders and investors. However, company managements are typically so enmeshed in the day-to-day crises of their demanding businesses that they fail to investigate and understand what is involved in going public. Failure to do so can often be fatal." Reduction in capital gains holding period a boon for investors, workers Tax Attorney: Ameek A. Ponda A just-enacted Internal Revenue Service tax simplification provision is a boon for investors and employees in the high-tech sector. Individuals are no longer required to hold stocks, bonds, and other investments for more than 18 months to pay taxes on their capital gains at the most favorable rates; a holding period of more than 12 months now suffices. This material may be considered advertising under the rules of the Supreme Judicial Court of Massachusetts. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. To the extent the State Bar Rules in your jurisdiction require us to designate a principal office we designate our office in Boston, Massachusetts as our principal office. © 1998 Sullivan & Worcester LLP Last updated: Friday, September 25, 1998.