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IRS Says Same-Sex Marriages Are Marriages for Tax Purposes No Matter the State of Residence

Recently, the IRS and Treasury Department announced that same-sex couples would be treated as married for all federal income tax purposes if the couple was legally married in a state or jurisdiction that recognizes same-sex marriage (regardless of their state of residence).?á This is consistent with the IRS?ÇÖs treatment of common law marriages as set out in IRS Revenue Ruling 58-66.?á Rev. Rul. 2013-17 can be found?áhere.

The Demise of DOMA?ÇÖs Core: Employer Response Avenues in the Wake of Windsor

Since the ruling in United States v. Windsor on June 26, 2013, employers have been trying to determine what this means for their employees and their employee benefits.?á While many unanswered questions remain, there are some actions employers can take now.?á You can find our recent alert discussing the Windsor decision, the issues facing employers and plan sponsors, and steps?áemployers can take now here.

IRS Regulations Clarify ?Ç£Eligible Employer-Sponsored Coverage?Ç¥ Definition Under Affordable Care Act?ÇÖs Individual Mandate

The IRS recently released final regulations (?Ç£Regulations?Ç¥) regarding the penalty payment required from individual taxpayers who fail to obtain minimum essential coverage (?Ç£MEC?Ç¥) under the Affordable Care Act, beginning in 2014 (known as the ?Ç£Individual Mandate?Ç¥).?á As relevant to employers, the Regulations address determinations of MEC availability and affordability, including treatment of retiree group medical and COBRA coverage, and forms of coverage that will be treated as MEC.?á In particular, the Regulations clarify that medical coverage offered to employees by an organization acting on behalf of an employer, such as a professional employer organization, leasing company, or multiemployer plan, will constitute ?Ç£eligible employer-sponsored coverage?Ç¥ that is MEC. ?á A link to the Regulations is available here.?á A link to the related IRS Fact Sheet is available here.

September 2013