Wow, “in olden days a glimpse of stocking turned into something shocking now heaven knows, anything goes”.    I’m not sure even Cole Porter envisioned this.

The Supreme Court struck down DOMA.  This is one of those decisions that in terms of tax law is earth shattering.   Marriage pervades the Tax Code.  There are joint tax returns, there are marital deductions, there are Retirement Equity Act provisions.  In other words, lots of issues.  So where do we go from here.

(1)  Gay persons who are legally married under relevant state law have up to three years to amend prior Federal tax returns to go to joint return status or married filing separately.

(2)  The Government will presumably have the right to audit all legally married gay people who filed under “single” status and re-calculate their returns as married filing separately (don’t see them doing this because that would trigger a joint return and refund).  In this circumstance, they could go back three years.

(3)   This will complicate the budget negotiations in Congress, so look for increased rates.

(4)  For decedent’s dying in the last four years estate tax returns should be filed or amended if the decedent was legally married under state law.