Right before the Labor Day holiday began last week, the IRS issued Revenue Ruling 2013-17 stating the IRS position on recognition of same-sex marriage for federal tax purposes. In the wake of the Supreme Court’s June 2013 decisions on same-sex marriage indicating federal law would defer to state law to ascertain whether a couple is legally married – the new question became: which state’s law? The couple’s residence state, or the state where the marriage was performed? The IRS adopted the “state of celebration” approach, which means that federal tax benefits and obligations will apply to same gender couples that are legally married in any state, even if they do not reside in a state that recognizes their marriage.
What Does the Revenue Ruling Do?
What Doesn’t the Revenue Ruling Do?
What are Some Tax Issues After the Revenue Ruling?
What are Some ERISA Considerations After the Revenue Ruling?
What Should Employers Expect?
What Should Employers Do Now?
The marriage recognition landscape is changing rapidly with federal agencies weighing in on treatment (and not necessarily the same treatment) on almost a weekly basis. Employers will need to be ready to make adjustments to benefit plans and payroll as the various positions are issued and clarified.
This article is provided for general informational purposes only and should not be construed as legal advice or legal opinion on any specific facts or circumstances. You are urged to consult a lawyer concerning any specific legal questions you may have.
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