Rev. Rul. 2013-17 addresses the recognition of same-sex marriages for federal tax purposes, including the administration of qualified retirement plans. The ruling establishes that for federal tax purposes, the validity of a same-sex marriage is determined based on the laws of the state where the marriage was entered into, regardless of the couple's current domicile. This uniform rule of recognition is intended to provide certainty and consistency in the application of federal tax laws, including those governing qualified retirement plans.
Key points from Rev. Rul. 2013-17 relevant to qualified retirement plans include:
- Uniform Recognition of Marriages: The ruling mandates that same-sex marriages validly entered into in any state will be recognized for federal tax purposes, including the administration of qualified retirement plans, regardless of where the couple currently resides. This ensures uniformity and stability in plan administration.
- Retroactive Application: The ruling allows taxpayers to rely on this interpretation retroactively for purposes of filing original, amended, or adjusted returns, or claims for credit or refund of overpayment of tax concerning employment tax and income tax with respect to employer-provided health coverage benefits or fringe benefits based on marital status.
- Future Guidance: The IRS intends to issue further guidance on the retroactive application of the Supreme Court's opinion in Windsor to other employee benefits and plans. This future guidance will consider the potential consequences for all parties involved, including plan sponsors, employers, employees, and beneficiaries, and will provide time for necessary plan amendments and corrections to maintain favorable tax treatment.
- Administrative Simplicity: The ruling emphasizes the importance of a uniform rule to avoid significant financial and administrative burdens on employers and plan administrators. Recognizing marriages based on the state of celebration rather than domicile simplifies plan administration and avoids the complexities and challenges that would arise from varying state laws.
- Plan Amendments and Corrections: The ruling anticipates that future guidance will allow sufficient time for plan amendments and necessary corrections to ensure that plans and benefits retain their favorable tax treatment.
In summary, Rev. Rul. 2013-17 establishes that for federal tax purposes, including the administration of qualified retirement plans, same-sex marriages are recognized based on the state where the marriage was entered into. This ruling aims to provide uniformity, reduce administrative burdens, and ensure consistent application of tax laws across different states.
Sources:
Rev. Rul. 2013-17
