By Amy Perzanowski, CPA

On Friday, June 26, in a 5-4 ruling, the Supreme Court held in Obergefell v. Hodges that the 14th amendment requires all states to license a marriage between two persons of the same sex and to recognize same-sex marriages validly performed out of state. This ruling will provide both same-sex and opposite-sex married couples with the same state and federal rights and privileges across all 50 states and the District of Columbia.

Before the decision, same-sex married couples were able to file joint tax returns at the federal level as a result of the 2013 US Supreme Court case, US v. Windsor. The 37 states that already recognized same-sex marriage generally require same-sex married couples to use the same filing status on their state returns as on their federal return. However, most states that did not recognize same-sex marriage required couples to file individually or as head of household. Some states even required same-sex married couples that filed jointly at the federal level to prepare pro forma individual returns for their federal taxes, creating an additional burden for those couples.

It is expected that states will soon issue tax guidance on how same-sex couples can file joint returns and whether couples who were already married can file amended returns for 2014.

It is expected that all couples will now have the opportunity to:
Make unlimited gifts to one other without having to worry about gift tax implications;

• Leave property to one another without the survivor needing to pay estate taxes;
• Leave an IRA to the surviving spouse as a "rollover" IRA, which is treated much more favorably for tax purposes than an "inherited" IRA;
• Qualify as a surviving spouse for purposes of determining Social Security benefits'
• Rights to visit each other in the hospital, or act as guardian or conservator for an incompetent spouse;
• Rights to file joint state income tax returns, thus saving money in many cases;
• Rights to inherit property under a state's intestacy statute, or to act as executor or personal representative of a deceased spouse's estate; and importantly,
• Enable same-sex couples to end a marriage that did not work out. Most states allow anyone to obtain a marriage license-regardless of where a couple is living. However, a couple generally cannot file for divorce in the court of any state in which they do not live.

By Chris Clark
 

With this latest decision, the ACA remains status quo, and employers need to continue planning for implementation and retain necessary information to meet the reporting requirements in a timely manner. Employers with more than 50 full-time equivalents will begin reporting for the 2015 calendar year under the IRS Code Section 6056 rules. Employers may use Form 1095 (due January 31, 2016) and Form 1094 (due February 28, 2016) to meet this reporting requirement.

For the latest on the Affordable Care Act, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040 or visit us on the web at www.uhy-us.com.

Why UHY Corporate Finance?

On Thursday, June 4, UHY LLP's Michigan practice invited a group of students from Thirkell Elementary in Detroit to their Farmington Hills office to help them develop stories for the Beyond Basics Publishing Center. UHY teamed up with Beyond Basics, a local 501c(3) nonprofit organization working to improve literacy and raise reading proficiency in inner city schools, to host students to help improve reading comprehension and expand the students' vocabularies.

Nearly 20 college recruits and other UHY employees gathered at UHY's training facility to help students from Mrs. Jackson's third grade class write their own personal stories. Each volunteer was assigned a student to mentor for the day. The recruits started by getting to know the students. With this information, the students created a short story that was designed to enhance vocabulary and sharpen writing skills. After the stories were written, each student was able to pick a book of their choice and read to their "buddy" or mentor.

As a result, 16 new stories were created for the Beyond Basics Publishing Center. This community event was part of UHY's Connect program. The program allows college recruits to get to know more about the organization, work with UHY employees, and experience some of the corporate social responsibility initiatives UHY takes part in. Both the students and UHY recruits benefited greatly from the experience.

"We have been working with Beyond Basics for the past four years, pairing our interns and college recruits with students from Detroit Public Schools. The objective of this program is to not only help strengthen the reading and writing skills of elementary school students but to also give our interns and recruits an understanding of UHY's commitment to giving back to the community and experiencing a volunteer outing first hand," said Rina Henning, UHY LLP recruiting manager.

UHY LLP places great emphasis on being active within the community from each recruits' first connection with the firm because corporate social responsibility is a high priority at all levels within the company. The firm also has its own independent 501c(3) organization, UHY Cares. Cares, which was incorporated over five years ago, was an idea inspired by employees and is volunteer based. Through UHY Cares, employees are able to give back to the community, including helping individuals going through personal emergencies or hardships. UHY Cares Michigan has provided assistance to over 150 local charities and families and continues to grow this list every year.

Beyond basics has been active in the Detroit community since 1999.Their mission is to guide and support children in economic need to develop fundamental educational skills. They aim to move these children beyond the basics and prepare them for productive and meaningful lives. The work the organization does, shaping the minds of grade school children, is especially important because nearly 50% of adults in Detroit are considered functionally illiterate.
 

UHY Corporate Finance Advises on Crain's Deal of the Year

As reported in Crain's Detroit Business in late March, UHY Advisors' Corporate Finance team presented private equity firm O2 Investment Partners LLC with the potential acquisition of a technology client, PC Treasures, Inc. At first Jay Hansen, managing partner of O2, had a hard time grasping PC's business. PC Treasures is a multi-channel distributor of licensed multimedia bundles and cutting-edge computer, tablet and smartphone accessories, and other specialty products. It took a while for Hansen and his staff to understand PC's niche, causing the deal to take longer, but the light finally went on.

Due diligence taught Hansen and Todd Fink, another O2 managing partner, that there was a profit to be made in bundling. They also learned that they were compatible with the co-founders of PC Treasures. The deal was especially complex because PC has a unique business model. They were launching a new major product and it was the middle of their busiest season. It was also imperative that the "family" culture remained intact to maintain great customer relationships built on mutual trust and quickly capitalize on new market opportunities.

The unique nature of the transaction forced the advisors on the deal to come up with creative solutions that would meet the needs of all parties. Despite the complications, the deal went smoothly and PC's co-founders Brian Austin and Les Thomas agreed to invest some of the proceeds from the sale back into the company.

The deal closed in November 2014, PC Treasures busiest season, and was awarded "Deal of the Year: Best Deal under $100 Million" by Crain's Detroit Business. UHY's team played a crucial role in facilitating the transaction. Operating under Steve McCarty; Aaron Witalec, Bob Kendall and Alex Conti acted as sell side advisors on the deal.
 

Careers at UHY 

• Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
• Audit Manager, 7+ years of experience, SEC experience is highly preferred
• Audit Accountant, 2-10 years of experience working with municipalities
• Audit Senior Staff Accountant, 2-4 years of experience
• Internal Audit Risk & Compliance Manager, 7+ years of experience
• R&D Tax Specialist, 7+ years of experience
• Tax Manager, 7-10 years of experience, marketing experience is required
• Tax Senior Consultant, 4-5 years of experience, Big 4 experience is required
• Tax Senior Accountant, 5-7 years of experience, CPA required
• Director of Litigation, testifying experience required municipalities
• Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred

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