Millions of homosexual couples celebrated the Supreme Court's ruling on DOMA. The IRS bound by the tax code is taking its time to find effective methods to implement the new tax rights of married gay couples. It has promised quick changes in its policies, but is yet to come up with those changes.
Married gay couples living in states that have not recognized same-sex marriage cannot file tax returns as married couples. Furthermore, married gay couples who reside in states that do not recognize their marriage, but were legally married in states that do, do not know what to do.
The IRS is not clear about the tax duties of married gay couples. If there is inequality in charging taxes based on the place of residence, then the death of DOMA will mean less for married gay couples living in states that do not recognize their marriage. Many, including the President believe married same-sex couples should receive the same federal benefits as others, regardless of where they reside.
The IRS has the power to interpret the tax code, so the word "spouse" does not present a problem for them. As the IRS is used to following the state's definition of marriage; it now finds itself with a difficult role. With the weight of correcting its own house, the IRS is taking its time in finding legal loopholes that the new tax duties might create so that it can effectively implement and enforce the new tax rules.
Labels: IRS, Marriage and Taxes, Tax Filing, Tax News, Taxpayers