Married Gays Grapple With IRS

Taxmen not recognizing same-sex unions
By Rob Quinn,  Newser Staff
Posted Aug 10, 2011 2:14 AM CDT
Married Gays Grapple With IRS
Same-sex newlyweds shouldn't expect any breaks from the IRS.   (AP Photo/Armando Franca)

The Internal Revenue Service is refusing to recognize gay marriages, causing headaches for couples who have won the right to wed in their home states, BusinessWeek finds. The Obama administration has urged federal agencies to extend benefits as far as they can to same-sex couples under existing law, but analysts say the IRS has little scope for stretching the rules without running afoul of the Defense of Marriage Act, which defines marriage as being between a man and a woman.

Same-sex couples are left with no option but to fill out a "dummy" federal return as well as joint returns, says a lawyer specializing in estate planning for same-sex couples. "You just spent decades getting your marriage recognized, and now the feds say, ‘No, you’re not,'" he grumbles. Under current IRS policy, same-sex partners inheriting large estates are forced to shell out up to 35% in estate taxes which heterosexual spouses would not have to pay. (Read more gay rights stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.