February 08, 2013
Nanette Lee Miller, West Coast Partner-In-Charge of Assurance Services, Featured in San Francisco Business Times Article "Accountants Embrace LGBT Clients in Tax Quagmire"
Gay and lesbian couples, especially if married or in domestic partnerships under state law, face complex tax and accounting issues due to conflicting state and national law.
Accountants and their LGBT clients have their hands full with same-sex couples where the answer to whether they're married is, it depends on who's asking.
The complexity grew in recent years when the Internal Revenue Service, recognizing state property laws, required income among gay couples to be treated as community property in California. That involves the couple filing a joint return for California state taxes. But such couples must file federal returns separately, splitting their income as community property, since the IRS cannot recognize the couple's marriage or domestic partnership under the federal Defense of Marriage Act.
"CPAs are typically a little more conservative when it comes to change," said Nanette Lee Miller, Marcum's West Coast director of assurance and head of its national LGBT practice, based in San Francisco. "They might be nervous about possible backlash, but I won't be surprised to see more firms make it a practice."
The debut of Marcum's LGBT practice last June has drawn national media attention. Actions by the U.S. Supreme Court and Obama embracing gay equality have also raised awareness of LGBT financial issues.
Miller completed a strategic plan over six months before debuting the LGBT practice, which is modeled after the firm's practices catering to specific industries.
The practice has generated about $350,000 in revenue over the first six months, and she expects it will reach $1 million in revenue by year-end. To reach those targets, Marcum expects to attract LGBT clients who need accounting services that go beyond tax preparation.Click here to read full article on www.bizjournals.com >>