Contact: Harvey Susnick & Michael Gottstein; Berdon LLP (New York, New York, USA)
On August 29th, the Treasury Department and the IRS ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.¹ The ruling applies regardless of whether the couple lives in, or is domiciled in, a jurisdiction that does not recognize the validity of same-sex marriage. The ruling implements the federal tax aspects of the June 26 Supreme Court decision in United States v. Windsor invalidating a key provision of the Defense of Marriage Act.
Under the ruling, same-sex couples will be treated as married for all federal tax purposes, including individual, gift and estate taxes. Additionally the ruling will also apply to payroll taxes paid on health insurance and fringe benefits provided to same sex spouses. Any same-sex marriage legally entered into in the United States, the District of Columbia, U.S. territories, and foreign countries will be covered by the ruling. The ruling does not apply to registered domestic partnerships, civil unions or similar formal relationships recognized under state law.
Legally-married same-sex couples generally must file their 2013 federal income tax return using either the married filing jointly or married filing separately filing status. Those who haven't yet filed for 2012 generally must file using a married filing separately or jointly status, if the return is filed on or after September 16, 2013. Individuals who were in same-sex marriages are allowed to file amended returns choosing to be treated as married for federal tax purposes for tax years still open under the statute of limitations. Generally, the statute of limitations for filing a refund claim is three years from the date the return was filed or two years from the date the tax was paid, whichever is later.
It should be noted that the ruling does not apply for state tax purposes and the current state of residence may not recognize same sex marriages. This may result in couples filing joint federal returns and separate single returns for state purposes.
¹Rev. Rul 2013-17
