The American Institute of CPAs (AICPA) identified 17 areas in which the Internal Revenue Service (IRS) should provide additional guidance to taxpayers and tax practitioners as a result of the U.S. Supreme Court’s decision in United States v. Windsor, which ruled that section 3 of the Defense of Marriage Act (DOMA) was unconstitutional.
The AICPA’s request for additional guidance covered income tax, estate and gift tax and other issues. Among the issues on which the AICPA requested guidance are:
· The status of certain civil unions and registered domestic partnerships;
· Whether special notations are needed on amended returns to aid in the processing of forms filed by couples who choose to amend their returns to convert to joint status;
· Whether a same-sex married employee who requests that his/her employer file to obtain a FICA tax refund must also amend his/her Form 1040 to change the filing status;
· The tax treatment of payments that qualify as alimony to/from a former same-sex marriage partner;
· The tax-free transfer of property between spouses;
· The process for estates to claim portability of the estate tax exemption if they did not file Form 706 because they were below the filing threshold; and
· How taxpayers must report, or track, previously reported gifts that are now eligible for the marital exclusion and for gift splitting.
The letter is available online.
For more information, or to speak with someone about the AICPA’s guidance request, contact Shirley Twillman at firstname.lastname@example.org or 202.434.9220.