Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
Same-sex couples in Illinois and other states can file amended federal returns to claim federal income tax and Federal Insurance Contributions Act refunds for benefits if they had retroactively elected to have a civil union recognized by the state as a marriage, an Internal Revenue Service official said Aug. 7.
Employers that sponsor qualified plans offering same-sex benefits may file for refunds of FICA taxes, which employers were required to withhold from imputed income for health-care benefits for same-sex spouses.
“An interesting twist in the Illinois marriage law, which took effect on June 1, 2014, is that it allows an individual in a civil union to make an election by May 31, 2015, to convert that civil union to a marriage and have the marriage considered in effect retroactive to the date of the civil union,” said Scott Mezistrano, IRS representative for industry stakeholder engagement and outreach.
Mezistrano, addressing the issue during a monthly teleconference between the IRS and payroll industry representatives, said a couple in a legal civil union in Illinois can make a retroactive election as married, allowing them to be considered married as far back as June 1, 2011, when civil unions became legal in Illinois, he said.
Although the IRS has made clear that it does not recognize civil unions for purposes of taxation, the agency does recognize marriage for taxation purposes, he said.
The changes started taking place a year ago after the Supreme Court ruled that the Defense of Marriage Act (Pub. L. 104-199) violated the constitutional guarantee of equal protection when applied to same-sex couples legally married under state law (United States v. Windsor (U.S., No. 12-307, 6/26/13)).
Other states have similar for retroactive-election policies, Mezistrano said.
According to Bloomberg BNA reference sources, these states also allow civil unions to be converted to marriages after same-sex marriage became legal: Connecticut, Delaware, New Hampshire and Rhode Island.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)