Community Update

Treasury
and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For
Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under
Federal Tax Law for Same-Sex Married Couples

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue
Service (IRS) today ruled that same-sex couples, legally married in
jurisdictions that recognize their marriages, will be treated as married for
federal tax purposes. The ruling applies regardless of whether the couple lives
in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does
not recognize same-sex marriage.

The ruling implements federal tax aspects of the June 26 Supreme Court
decision invalidating a key provision of the 1996 Defense of Marriage Act.

Under the ruling, same-sex couples will be treated as married for all
federal tax purposes, including income and gift and estate taxes. The ruling
applies to all federal tax provisions where marriage is a factor, including
filing status, claiming personal and dependency exemptions, taking the standard
deduction, employee benefits, contributing to an IRA and claiming the earned
income tax credit or child tax credit.

Any same-sex marriage legally entered into in one of the 50 states, the
District of Columbia, a U.S. territory or a foreign country will be covered by
the ruling. However, 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.

Individuals who were in same-sex marriages may, but are not required to,
file original or amended returns choosing to be treated as married for federal
tax purposes for one or more prior 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. As a result, refund claims can still be filed for tax
years 2010, 2011 and 2012. Some taxpayers may have special circumstances, such
as signing an agreement with the IRS to keep the statute of limitations open,
that permit them to file refund claims for tax years 2009 and earlier.

Additionally, employees who purchased same-sex spouse health insurance
coverage from their employers on an after-tax basis may treat the amounts paid
for that coverage as pre-tax and excludable from income.

How to File a Claim for Refund

Taxpayers who wish to file a refund claim for income taxes should use Form
1040X, Amended U.S. Individual Income Tax Return.

Taxpayers who wish to file a refund claim for gift or estate taxes should
file Form
843, Claim for Refund and Request for Abatement. For information on filing
an amended return, see Tax
Topic 308, Amended Returns, available on IRS.gov, or the Instructions to
Forms 1040X and 843. Information on where to file your amended returns is
available in the instructions to the form.

Future Guidance

Treasury and the IRS intend to issue streamlined procedures for employers
who wish to file refund claims for payroll taxes paid on previously-taxed
health insurance and fringe benefits provided to same-sex spouses. Treasury and
IRS also intend to issue further guidance on cafeteria plans and on how
qualified retirement plans and other tax-favored arrangements should treat
same-sex spouses for periods before the effective date of this Revenue Ruling.

Other agencies may provide guidance on other federal programs that they
administer that are affected by the Code. 

Revenue
Ruling 2013-17, along with updated Frequently Asked Questions for same-sex
couples and updated FAQs for registered domestic partners and individuals in
civil unions, are available today on IRS.gov. See also Publication
555, Community Property.