Tax for Same Sex Marriage

VADER MAUL & CO.

CERTIFIED PUBLIC ACCOUNTANTS

MEMORANDUM

DATE: February 24, 2016

FROM: John Doe

TO: C3PO AND R2D2

SUBJECT: Married Joint Filing Status

Facts: On March 1, 2013, R2D2 moved into C3P0’s home in El Paso’s Upper Valley. Ever since, R2D2, C3PO, and C6P9 (C3P0’s five-year-old child) have been living harmoniously as a family. Through family workshops, C3P0 learned that a Texas couple can be considered married after living together as husband and wife for six months even if they do not have been part to a ceremonial marriage. Excited about the news, C3P0 and R2D2 decided to file their 2014 federal income tax return as married filing jointly. However, their tax return preparer told them they could not file as married filing jointly.

Issues: Did C3P0 and R2D2 receive the right information from their 2014 tax return preparer about not being able to file as married filing jointly? Can C3P0 and R2D2 be married through common-law if they lived

more than six months together in Texas? And if so, can the same-sex

couple file their tax return as married filing jointly for 2015?

Authorities: Reg § 301.7701

Publication 555: What’s new

Conclusion: On June 26, 2015, same-sex marriage was legalize nationwide.

Accordingly, C3P0 and R2D2 were unable to file as married filing jointly in 2014, because the state of Texas did not license same-sex marriage. Between June 2013 and June 2015, if C3P0 and R2D2 had been married through another state that licenses same-sex marriage, then by law, Texas would have to recognize their marriage. And so, C3P0 and R2D2 would have been able to file their tax return as married filing jointly in 2014. For 2015, the U.S. Congress passed for all states to license same-sex marriages. In addition, Texas couple can be considered married after living together as husband and wife for six months even if they do not have been part to a ceremonial marriage. Thus,...