IRS Announces Rules on Same-Sex Marriage
The IRS recently announced how it handle same-sex marriages as a result of the Supreme Court cases interpreting the Defense of Marriage Act. Here are a few bullet points on the IRS position. Keep in mind that as with all IRS rules and regulations, this new pronouncement is a two edge sword. That is to say, you may have reporting errors if you don't follow the rules. Ironically, this aspect of the new position is truly Equal Opportunity and Equal Treatment - be careful of what you want as you might get it! Here are the point: 1. Under these new rules, same-sex marriages that are valid in the state where they were performed will be recognized for all federal tax purposes, even if the couple is domiciled in a state that does not recognize their marriage. 2. These rules apply to income taxes, estate and gift taxes and payroll taxes related to employee benefits. 3. Here is an example of "gotcha" from Uncle Sam - As a result, beginning with the ...