Statute of Limitations Challenge Likely on Estate Tax Refunds Post-DOMA

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Although same-sex couples may get a reprieve on estate and gift tax paid when passing property from one spouse to another following the U.S. Supreme Court's same-sex marriage decision, it may take another court ruling to resolve whether the Internal Revenue Service will open up years prior to the current statute of limitations for amended returns, an estate tax attorney told Bloomberg BNA.
The IRS and Treasury Department in August announced that same-sex couples who were legally married in jurisdictions that recognize their marriages will be treated as married for federal tax purposes, whether the couples live in a state that recognizes same-sex marriage or a state that doesn't recognize it. Thus they said that taxpayers would be allowed to file a refund claim for gift or estate taxes paid prior to the decision in Windsor v. United States (169 DTR G-2, 8/30/13).
The landmark Windsor decision ruled as unconstitutional the Defense of Marriage Act, which defined marriage as a union only between a man and a woman.
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