Federal tax implications of same-sex marriage.

• Author: Downer, Abigail L.

On Nov. 18, 2003, the Massachusetts Supreme Judicial Court handed down a decision which, potentially, could have vast implications for the culturally charged issue of the Federal position on same-sex marriage. In Hillary Goodridge v. Dep't of Pub. Health, 440 Mass. 309, 343 (2003), the court held that to "deny the protections, benefits, and obligations conferred by civil marriage to two individuals of the same sex who wish to marry" was inconsistent with the constitution of the Commonwealth of Massachusetts.

The court further clarified, on Feb. 3, 2004, that merely granting civil union status would not satisfy the decision to grant marriage rights to two individuals of the same gender; see Opinions of the Justices to the Senate (SJC-09163, 2/3/04).This position immediately incited debate, as Lawmakers, government agencies and activist groups began wrestling with the resulting implications for two important issues: filing Federal returns and qualifying for Social Security benefits.

The Federal Definition of Marriage

The Federal definition of marriage determines the U.S. government's position on both of these issues. In 1996, the Defense of Marriage Act (DOMA) was enacted, which currently defines marriage for Federal purposes. DOMA Section 3(a) states, "[i]n determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word 'marriage' means only a legal union between one man and one woman as husband and wife, and the Word 'spouse' refers only to a person of the opposite sex who is a husband or a wife."

Application by the IRS

In response to queries about the Federal implications of the Massachusetts decision, Frank Keith, the IRS Chief of Communications and Liaison, represents the IRS's position as follows: "Because of [the DOMA], only married individuals under this definition could elect to file a joint tax return"; see www.worldnetdaily.com/news/printer-friendly. asp?ARTICLE_ID=38989 and www.publicadvocateusa.org/news/article.php? article=95. Although a state may acknowledge two people of the same gender as united in marriage for state purposes, they will not be considered married under Federal law.

He goes on to say that taxpayers in same-sex relationships are not allowed to file as a married couple on a Federal income tax return. As a result of this determination, same-sex couples married in Massachusetts will likely have a...