Update on Same-Sex Spouses

In the October 2013 issue of the CPA Client Bulletin, we discussed tax issues
facing same-sex married couples, in light of the Supreme Court’s ruling that
Section 3 of the federal Defense of Marriage Act was unconstitutional. We
stated that same-sex marriages will be recognized for federal tax purposes if
the couple was married in a state that permits these marriages and still lives in
such a state.
Since that issue went to press, the IRS issued Revenue Ruling 2013-17,
stating that a valid same-sex marriage will be recognized for federal tax
purposes, no matter where the couple lives or works. However, the ruling also
declared that, for federal tax purposes, civil unions and domestic partnerships
will not be recognized as marriages.
In addition, the Department of Labor has stated that the terms “spouse”
and “marriage” in federal employee benefit laws will now include same-sex
couples who were legally married. That treatment applies regardless of where
an employee and his or her same-sex spouse now reside.