IRS Issues Guidance on Same-Sex Marriages

Following the United States Supreme Court's decision in U.S. v. Windsor, the Internal Revenue Service ("IRS") has issued Revenue Ruling 2013-17, which includes significant guidance on the treatment of same-sex couples and spouses under the nation's tax laws, including the employee benefits provisions of the Internal Revenue Code.

Background

In U.S. v. Windsor, the U.S. Supreme Court held that Section 3 of the Defense of Marriage Act ("DOMA") is unconstitutional. Our newsletter discussing the Windsor case and its impact on employee benefits may be accessed here. As a result, federal law will recognize valid same-sex marriages.

The Internal Revenue Code includes hundreds of provisions that refer to a taxpayer's marital status or spouse. For employee benefits purposes, these provisions give an employee's spouse a tax benefit, an entitlement (usually in the context of qualified retirement plans) or an obligation, such as under a QDRO.