October 23, 2012
Second U.S. Circuit Court of Appeals Decision on Defense of Marriage Act Creates Immediate Opportunity for Tax Appeal, Marcum LLP Says
New York City, NY – Last Thursday's decision by the Second U.S. Circuit Court of Appeals regarding the Defense of Marriage Act (DOMA) creates an immediate opportunity for lesbian, gay, bisexual and transgendered (LGBT) families to file protective tax refund claims, according to national accounting and advisory firm Marcum LLP. Marcum, which launched a national LGBT and non-traditional family practice last spring, advises all eligible families in this broadly underserved market to file protective claims for potential refunds of income and estate tax overpayments dating to 2009.
"There is a three-year statute of limitations on tax refund claims. Filing a protective claim now will give LGBT and non-traditional family taxpayers standing while DOMA continues to work its way through the court system. It is critical that claims be filed immediately in order to stop the statute of limitations from running," said Nanette Lee Miller, national leader of Marcum's LGBT practice group and Partner-in-Charge of Assurance Services for the firm's California offices.
The Second Circuit found that DOMA's definition of marriage as a union between a man and a woman is unconstitutional. If the U.S. Supreme Court hears the case as expected and upholds this finding, same-sex couples previously denied income and estate tax deductions available to traditional families will be able to file claims for refunds of overpayments. This will apply only to those whose marriages are recognized by the state in which they reside.
"We have been following DOMA closely for tax implications affecting same-sex couples. In addition to filing protective refund claims, non-traditional families should also carefully re-consider their current estate plans in light of the recent court decision," said Janis Cowhey McDonagh, a partner in the firm's New York City office and a member of its Trusts and Estates Practice group, who frequently lectures on LGBT estate and income tax issues.
Marcum LLP is the thought leader in the specialty area of tax compliance and consulting services within the LGBT communities. The firm's professionals have more than 20 years of experience in dealing with the complex tax and financial rules faced by LGBT couples and families, state-by-state and around the country.
About Marcum LLP
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting and assurance services; advisory, valuation and litigation support; and an extensive range of specialty and niche industry practices. The Firm serves both privately held and publicly traded companies, as well as high net worth individuals, private equity funds and hedge funds, with a focus on middle-market companies and closely held family businesses. Marcum is a member of the Marcum Group, an organization providing a comprehensive array of professional services.