“State of celebration” for same sex couples.
The IRS has ruled that same-sex couples legally married in a jurisdiction that recognizes same-sex marriages, will be treated as married for federal tax purposes. The ruling applies even if a same-sex couple moves to a jurisdiction that does not recognize same-sex marriages. Therefore, the IRS in a revenue ruling, 2013-17, have adopted a “state of celebration” approach for the treatment of same-sex marriages. For example, if a same-sex couple marries in California, a state that recognizes same-sex marriages, and moves to Arizona, a state that does not recognize same-sex marriages, the same-sex couple will be treated as married for federal tax purposes because they were married in a jurisdiction that recognizes same-sex marriages. Revenue Rule 2013-17 applies to all federal tax laws in which marriage is a factor, including filing status, personal and dependency exemptions, standard deductions, and employee benefits. Take care though, Revenue Rulings do not have the same force of precedence as court cases – the IRS can change its position at any time.