PRIDE Act of 2023

To permit legally married same-sex couples to amend their filing status for income tax returns outside the statute of limitations, to amend the Internal Revenue Code of 1986 to clarify that all provisions shall apply to legally married same-sex couples in the same manner as other married couples, and for other purposes. 1. Short title This Act may be cited as the Promoting Respect for Individuals’ Dignity and Equality Act of 2023 PRIDE Act of 2023 2. Extension of period of limitation for certain legally married couples (a) In general In the case of an individual first treated as married for purposes of the Internal Revenue Code of 1986 by the application of the holdings of Revenue Ruling 2013–17— (1) if such individual filed a return (other than a joint return) for a taxable year ending before September 16, 2013, for which a joint return could have been made by the individual and the individual's spouse but for the fact that such holdings were not effective at the time of filing, such return shall be treated as a separate return within the meaning of section 6013(b) of such Code and the time prescribed by section 6013(b)(2)(A) of such Code for filing a joint return after filing a separate return shall not expire before the date prescribed by law (including extensions) for filing the return of tax for the taxable year that includes the date of the enactment of this Act, and (2) in the case of a joint return filed pursuant to paragraph (1)— (A) the period of limitation prescribed by section 6511(a) of such Code for any such taxable year shall be extended until the date prescribed by law (including extensions) for filing the return of tax for the taxable year that includes the date of the enactment of this Act, and (B) section 6511(b)(2) of such Code shall not apply to any claim of credit or refund with respect to such return. (b) Amendments, etc. restricted To change in marital status Subsection (a) shall apply only with respect to amendments to the return of tax, and claims for credit or refund, relating to a change in the marital status for purposes of the Internal Revenue Code of 1986 of the individual. 3. Rules relating to all legally married couples (a) In general The Internal Revenue Code of 1986 is amended— (1) in section 21(d)(2)— (A) by striking himself self (B) by striking any husband and wife any married couple (2) in section 22(e)(1)— (A) by striking husband and wife who live married couple who lives (B) by striking the taxpayer and his spouse the taxpayer and the spouse of the taxpayer (3) in section 38(c)(6)(A), by striking husband or wife who files married individual who files (4) in section 42(j)(5)(C), by striking clause (i) and inserting the following new clause: (i) Married couple treated as 1 partner For purposes of subparagraph (B), individuals married to one another (and their estates) shall be treated as 1 partner. ; (5) in section 62(b)(3)— (A) in subparagraph (A)— (i) by striking husband and wife who lived apart married couple who lived apart (ii) by striking the taxpayer and his spouse the taxpayer and the spouse of the taxpayer (B) in subparagraph (D), by striking husband and wife married couple (6) in section 121— (A) in subsection (b)(2), by striking husband and wife who make married couple who makes (B) in subsection (d)(1), by striking husband and wife make married couple makes (7) in section 165(h)(4)(B), by striking husband and wife married couple (8) in section 179(b)(4), by striking a husband and wife filing individuals married to one another who file (9) in section 213(d)(8), by striking (relating to determination of status as husband and wife) (10) in section 219(g)(4), by striking A husband and wife Married individuals (11) in section 274(b)(2)(B), by striking husband and wife married couple (12) in section 643(f), by striking husband and wife married couple (13) in section 761(f)— (A) in paragraph (1), by striking husband and wife married couple (B) in paragraph (2)(A), by striking husband and wife married couple (14) in section 911— (A) in subsection (b)(2), by striking subparagraph (C) and inserting the following new subparagraph: (C) Treatment of community income In applying subparagraph (A) with respect to amounts received from services performed by a married individual which are community income under community property laws applicable to such income, the aggregate amount which may be excludable from the gross income of such individual and such individual's spouse under subsection (a)(1) for any taxable year shall equal the amount which would be so excludable if such amounts did not constitute community income. ; and (B) in subsection (d)(9)(A), by striking where a husband and wife each have where both spouses have (15) in section 1244(b)(2), by striking a husband and wife filing a joint return for such year under section 6013 a joint return (16) in section 1272(a)(2)(D), by striking clause (iii) and inserting after clause (ii) the following new clause: (iii) Treatment of a married couple For purposes of this subparagraph, a married couple shall be treated as 1 person. The preceding sentence shall not apply where the spouses lived apart at all times during the taxable year in which the loan is made. ; (17) in section 1313(c)(1), by striking husband and wife spouses (18) in section 1361(c)(1)(A)(i), by striking a husband and wife a married couple (19) in section 2040(b), by striking Certain joint interests of husband and wife Certain joint interests of married couple (20) in section 2513— (A) by striking Gift by husband or wife to third party Gift by one spouse to third party (B) by striking paragraph (1) of subsection (a) and inserting before paragraph (2) the following new paragraph: (1) In general A gift made by one individual to any person other than such individual's spouse shall, for the purposes of this chapter, be considered as made one-half by the individual and one-half by such individual's spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. This paragraph shall not apply with respect to a gift by an individual of an interest in property if such individual creates in the individual's spouse a general power of appointment, as defined in section 2514(c), over such interest. For purposes of this section, an individual shall be considered as the spouse of another only if the individual is married to the individual's spouse at the time of the gift and does not remarry during the remainder of the calendar year. ; (21) in section 2516— (A) by striking his or her (B) by striking Where a husband and wife enter (a) In general Where a married couple enters ; and (C) by adding at the end the following new subsection: (b) Spouse For purposes of this section, if the spouses referred to are divorced, wherever appropriate to the meaning of this section, the term spouse former spouse ; (22) in section 5733(d), by striking paragraph (2) and inserting after paragraph (1) the following new paragraph: (2) a spouse succeeding to the business of a living spouse; ; (23) in section 6013— (A) by striking Joint returns of income tax by husband and wife Joint returns of income tax by a married couple (B) in subsection (a), in the matter preceding paragraph (1), by striking husband and wife married couple (C) in subsection (a)(1), by striking either the husband or wife either spouse (D) in subsection (a)(2)— (i) in the first sentence, by striking husband and wife spouses (ii) in the second sentence, by striking his taxable year such spouse's taxable year (E) in subsection (a)(3)— (i) in the first sentence, by striking his executor or administrator the decedent's executor or administrator (ii) in the first sentence, by striking with respect to both himself and the decedent with respect to both the surviving spouse and the decedent (iii) in the second sentence, by striking constitute his separate return constitute the survivor's separate return (F) in subsection (b), by striking paragraph (1) and inserting the following new paragraph: (1) In general Except as provided in paragraph (2), if an individual has filed a separate return for a taxable year for which a joint return could have been made by the individual and the individual's spouse under subsection (a) and the time prescribed by law for filing the return for such taxable year has expired, such individual and such spouse may nevertheless make a joint return for such taxable year. A joint return filed under this subsection shall constitute the return of the individual and the individual's spouse for such taxable year, and all payments, credits, refunds, or other repayments made or allowed with respect to the separate return of either spouse for such taxable year shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. If a joint return is made under this subsection, any election (other than the election to file a separate return) made by either spouse in a separate return for such taxable year with respect to the treatment of any income, deduction, or credit of such spouse shall not be changed in the making of the joint return where such election would have been irrevocable if the joint return had not been made. If a joint return is made under this subsection after the death of either spouse, such return with respect to the decedent can be made only by the decedent's executor or administrator. ; (G) in subsection (c), by striking husband and wife spouses (H) in subsection (d)(1), by striking as husband and wife as married (I) in subsection (d)(2), by striking his spouse the spouse of the individual (J) in subsection (f)(2)(B), by striking such individual, his spouse, and his estate shall be determined as if he were alive such individual, the individual's spouse, and the individual's estate shall be determined as if the individual were alive (K) in subsection (f)(3)— (i) in subparagraph (A), by striking for which he is entitled for which such member is entitled (ii) in subparagraph (B), by striking for which he is entitled for which such employee is entitled (24) in section 6014(b), by striking husband and wife a married couple (25) in section 6017, by striking husband and wife married couple (26) in section 6096(a), by striking of husband and wife having reporting (27) in section 6166(b)(2), by striking subparagraph (B) and inserting the following new subparagraph: (B) Certain interests held by married couple Stock or a partnership interest which— (i) is community property of a married couple (or the income from which is community income) under the applicable community property law of a State, or (ii) is held by a married couple as joint tenants, tenants by the entirety, or tenants in common, shall be treated as owned by 1 shareholder or 1 partner, as the case may be. ; (28) in section 6212(b)(2)— (A) by striking return filed by husband and wife return (B) by striking his last known address the last known address of such spouse (29) in section 7428(c)(2)(A), by striking husband and wife married couple (30) in section 7701(a)— (A) by striking paragraph (17); and (B) in paragraph (38), by striking husband and wife married couple (31) in section 7872(f), by striking paragraph (7) and inserting the following new paragraph: (7) Married couple treated as 1 person A married couple shall be treated as 1 person. . (b) Conforming amendments (1) The table of sections for subchapter B of chapter 12 section 2513 Sec. 2513. Gift by spouse to third party. . (2) The table of sections for subpart B of part II of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6013 and inserting the following new item: Sec. 6013. Joint returns of income tax by a married couple. . 4. Rules relating to the gender of spouses, etc (a) In general The following provisions of the Internal Revenue Code of 1986 are each amended by striking his spouse the individual's spouse (1) Subsections (a)(1) and (d) of section 1. (2) Section 2(b)(2)(A). (3) Subsections (d)(1)(B) and (e)(3) of section 21. (4) Section 36(c)(5). (5) Section 71(b)(1)(C). (6) Section 179(d)(2)(A). (7) Section 318(a)(1)(A)(i). (8) Section 408(d)(6). (9) Section 469(i)(5)(B)(ii). (10) Section 507(d)(2)(B)(iii). (11) Clauses (ii) and (iii) of section 613A(c)(8)(D). (12) Section 672(e)(2). (13) Section 704(e)(2). (14) Subparagraphs (A) and (B)(ii) of section 911(c)(3). (15) Section 1235(c)(2). (16) Section 1563(e)(5). (17) Section 3121(b)(3)(B). (18) Section 4946(d). (19) Section 4975(e)(6). (20) Subparagraphs (A)(iv) and (B) of section 6012(a)(1). (21) Section 7703(a). (b) Conforming amendments (1) The following provisions of the Internal Revenue Code of 1986 are each amended by striking his spouse the taxpayer's spouse (A) Section 2(a)(2)(B). (B) Subparagraphs (B) and (C) of section 2(b)(2). (C) Paragraphs (2) and (6)(A) of section 21(e). (D) Section 36B(e)(1). (E) Section 63(e)(3)(B). (F) Section 86(c)(1)(C)(ii). (G) Section 105(c)(1). (H) Section 135(d)(3). (I) Section 151(b). (J) Subsections (a) and (d)(7) of section 213. (K) Section 1233(e)(2)(C). (L) Section 1239(b)(2). (M) Section 6504(2). (2) The following provisions of the Internal Revenue Code of 1986 are each amended by striking his spouse the employee's spouse (A) Section 132(m)(1). (B) Section 401(h)(6). (C) Section 3402(l)(3). (3) The following provisions of the Internal Revenue Code of 1986 are each amended by striking his taxable year the individual's taxable year (A) Section 2(b)(1). (B) Section 7703(a)(1). (4) The following provisions of the Internal Revenue Code of 1986 are each amended by striking his taxable year the taxpayer's taxable year (A) Subparagraphs (B) and (C) of section 2(b)(2) (as amended by paragraph (1)(B)). (B) Section 63(f)(1)(A). (5) The following provisions of the Internal Revenue Code of 1986 are each amended by striking his home the individual's home (A) Section 2(b)(1)(A). (B) Section 21(e)(4)(A)(i). (C) Section 7703(b)(1). (6) The Internal Revenue Code of 1986, as amended by this section, is amended— (A) in section 2(a)(1)(A), by striking his two taxable years the taxpayer's two taxable years (B) in section 2(a)(1)(B), by striking his home the taxpayer's home (C) in paragraphs (1)(A) and (2)(A) of section 63(f), by striking for himself if he for the taxpayer if the taxpayer (D) in section 63(f)(4), by striking his the individual's (E) in section 105(b)— (i) by striking his spouse, his dependents the taxpayer's spouse, the taxpayer's dependents (ii) by striking by him (F) in the heading of section 119(a), by striking , his spouse, and his dependents and the employee's spouse and dependents (G) in section 119(a), by striking him, his spouse, or any of his dependents by or on behalf of his employer the employee or the employee's spouse or dependents by or on behalf of the employer of the employee (H) in section 119(a)(2), by striking his the employee's (I) in section 119(d)(3)(B), by striking his spouse, and any of his dependents the employee's spouse, and any of the employee's dependents (J) in section 129(b)(2), by striking himself the spouse's self (K) in section 170(b)(1)(F)(iii)— (i) by striking his spouse the spouse of such donor (ii) by striking his death or after the death of his surviving spouse if she the death of the donor or after the death of the donor's surviving spouse if such surviving spouse (L) in section 213(c)(1)— (i) by striking his estate the estate of the taxpayer (ii) by striking his death the death of the taxpayer (M) in section 213(d)(7), by striking he the taxpayer (N) in section 217(g)— (i) by striking , his spouse, or his dependents or the spouse or dependents of such member (ii) by striking his dependents dependents (iii) by striking his spouse the member's spouse (O) in section 217(i)(3)(A), by striking his (P) in section 267(c), by striking his the individual's (Q) in section 318(a)(1)(A)(ii), by striking his the individual's (R) in section 402(l)(4)(D), by striking , his spouse, and dependents and the spouse and dependents of such officer (S) in section 415(l)(2)(B), by striking , his spouse, or his dependents or the participant's spouse or dependents (T) in section 420(f)(6)(A), by striking his covered spouse and dependents the covered spouse and dependents of such retiree (U) in section 424(d)(1), by striking his the individual's (V) in section 544(a)(2), by striking his the individual's (W) in section 911(c)(3), by striking him the individual (X) in section 1015(d)(3), by striking his spouse the donor's spouse (Y) in section 1563(e)— (i) by striking his children the individual's children (ii) by striking his parents the individual's parents (Z) in section 1563(f)(2)(B), by striking him the individual (AA) in section 2012(c), by striking his spouse the decedent's spouse (BB) in section 2032A(e)(10), by striking his surviving spouse the decedent's surviving spouse (CC) in section 2035(b)— (i) by striking his estate the decedent's estate (ii) by striking his spouse the decedent's spouse (DD) in subsections (a) and (b)(5) of section 2056, by striking his (EE) in section 2523(b)— (i) by striking (or his heirs or assigns) or such person (or his heirs or assigns) (or the donor's heirs or assigns) or such person (or such person's heirs or assigns) (ii) by striking himself the donor's self (iii) by striking he the donor (iv) by striking him the donor (FF) in section 2523(d), by striking himself the donor's self (GG) in section 2523(e), by striking his spouse the donor's spouse (HH) in section 3121(b)(3)— (i) by striking his father the child's father (ii) by striking his father the individual's father (iii) by striking his son the individual's son (II) in section 3306(c)(5)— (i) by striking his son the individual's son (ii) by striking his father the child's father (JJ) in section 3402(l)— (i) by striking he the employee (ii) by striking his taxable year the employee's taxable year (KK) in section 4905(a), by striking his spouse such person's spouse (LL) in section 6046(c), by striking his the individual's (MM) in section 6103(e)(1)(A)(ii), by striking him the individual (NN) in section 7448(a)(8), by striking his death the individual's death (OO) in subsections (d) and (n) of section 7448, by striking his the individual's (PP) in section 7448(m)(1)(A)(i), by striking he such judge or special trial judge (QQ) in section 7448(q)— (i) by striking his such judge's (ii) by striking to bring himself to come

Summary: Promoting Respect for Individuals' Dignity and Equality Act of 2023 or the PRIDE Act of 2023 This bill requires the equal treatment of same sex married couples for tax purposes. It permits such couples to amend their filing status to married filing jointly for tax returns outside of the statute of limitations and modifies tax rules relating to married couples to include same sex couples.