DOMA-Contingent Protective Claims Should Be Filed Now, Attorneys Warn
Tax practitioners are advising business and individual clients alike to file protective claims for tax refunds going back to 2009 before the statute of limitations expires on April 15, in advance of the Supreme Court possibly striking down the Defense of Marriage Act in June.
The filings are needed because same-sex married taxpayers could be due a refund on federal income taxes and Federal Insurance Contributions Act (FICA) taxes—collectively, Medicare and Social Security—they paid on employer-provided benefits that were added back in as taxable wages at the federal level, practitioners told BNA April 8. Employers can also file for a refund on their portion of FICA taxes paid on such benefits.
Unlike the tax treatment of different-sex married couples, DOMA generally prevents benefits such as health care coverage and group-term life insurance premiums from being excluded from federal taxable wages, resulting in an overstatement of both income and FICA wages, practitioners explained.
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