I wanted to let you know that on Thursday August 29, 2013, the Internal Revenue Service (IRS) released its first major guidance for same-sex couples.

This is a result of the U.S. Supreme Court's June 26, 2013 decision on the Windsor case, which struck down Section 3 of the 1996 Defense of Marriage Act (DOMA) as unconstitutional.  You may remember my One Minute Tax Tip dated July 1, 2013 explaining that decision and its implications.

Basically, the IRS has taken the position that for federal tax purposes, they will recognize a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex.

This rule applies regardless of whether or not the jurisdiction in which the couple currently resides recognizes the validity of same-sex marriages.

The IRS will not recognize registered domestic partners or individuals in civil unions as married individuals.

These changes will impact all income, gift and estate tax provisions for those affected.  They will also affect payroll taxes in connection with same-sex spousal group health plan coverage.  Amended returns may be in order for both individuals and employers who are affected.

If you are an individual in any of these circumstances or an employer who needs to know how these rules may affect you and your employees, there are several key links I will provide to give you the details you need.