US Treasury and IRS Recognize Same-Sex Marriages for Federal Tax Purposes

accounting-calculatorYesterday the U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced that legally married same-sex couples will be recognized and treated as married for all federal tax purposes. As long as the couple is legally married it does not matter if they live in a jurisdiction that does not recognize same-sex marriages. The announcement comes just months after the Supreme Court’s decision in United States v. Windsor, which held that a key provision of the Defense of Marriage Act (DOMA) violated principles of equal protection under the Due Process Clause of the Fifth Amendment. The ruling gives married same-sex couples the freedom to move throughout the United States without having to worry about federal tax implications. However, the ruling does not apply to couples in domestic partnerships or civil unions.

Yesterday’s “ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA, and claiming the earned income tax credit or child tax credit.” IR-2013-72. The ruling is to be applied retroactively so married same-sex couples have the opportunity to file or amend federal tax returns for the 2010, 2011, and 2012 tax years. Before amending returns, couples will want to determine if their combined income will subject them to the “marriage penalty” which could place them in a higher tax rate bracket.

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Egypt & the Take Care Clause

In the course of recent debates over how to respond to the events in Egypt, many have pointed out that the central legal question is whether Section 508 of the Foreign Assistance Act obligates the President to cancel hundreds of millions in U.S. military aid. Reports have now emerged that the Administration has quietly decided to suspend aid on a temporary basis, but without deciding that a coup has occurred. Putting aside the complex policy questions at stake, I want raise a couple of points on the relationship between this decision and the President’s duty under the Take Care Clause, and suggest that the President has a statutory and constitutional obligation to go one step further and cancel military aid, unless Congress passes a new law overriding the current statute.

Here’s what Section 508 says:

None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance directly any assistance to any country whose duly elected head of government is deposed by military coup or decree: Provided, That assistance may be resumed to such country if the President determines and reports to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office.

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A Response to the Bolton & Yoo Op-ed on the Arms Trade Treaty

A few months ago John Bolton and John Yoo published an op-ed in the Wall Street Journal criticizing the Obama Administration for promoting U.S. ratification of the Arms Trade Treaty, which the UN General Assembly adopted in April. The op-ed argues that the ATT would enable the Administration to circumvent Congress and require new domestic limits on small arms in violation of the Second and Tenth Amendments. I just read the piece and was surprised at how unpersuasive I found it to be, so I decided to write a quick response. I have already explained why the Second Amendment argument isn’t particularly compelling, but a few additional points deserve emphasis:

First, in arguing that Articles 5 and 10 of the treaty would require the United states to adopt new restrictions, Bolton and Yoo overlook existing federal law. They acknowledge that the United States “already has the world’s most serious export controls in place.” What they fail to mention is that current laws also impose permit and registration requirements on arms importers, bar some imports based on country of origin, mandate broker registration, and even authorize criminal penalties against violators. I see nothing in Articles 5 and 10, or in the op-ed, indicating that these laws would be insufficient. That being the case, it’s at least questionable that the United States would have to adopt new import restrictions after ratification. While some might perceive the sufficiency of existing U.S. law as an argument against ratification, that view ignores the positive diplomatic implications of U.S. participation—an arms treaty backed by the world’s largest arms exporter would enjoy much greater legitimacy.

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