An I.R.S. decision that affects three states with both same-sex marriage or registered domestic partnerships and community property laws (California, Nevada, and Washington) is causing issues for same-sex couples filing their tax returns. The decision allows legally partnered same-sex couples to file their federal taxes separately and split their earned incomes on their tax returns. The problem is that there is no box to check on the forms, which makes it appear that some filers are underreporting income. Thus, there’s no way for these couples to file online; they need expert advice this year, which will cost each household hundreds of dollars. Further, many I.R.S. agents are unaware of the decision, and taxpayers will face a barrage of bureaucracy after filing.
See Scott James, For Same-Sex Couples, a Tax Victory That Doesn’t Feel Like One, N.Y. Times, Jan. 14, 2010.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this to my attention.
