Refund Equality Act of 2017

To amend the Internal Revenue Code of 1986 to permit legally married same-sex couples to amend their filing status for returns outside the 3-year limitation. 1. Short title This Act may be cited as the Refund Equality Act of 2017 2. Extension of period of limitation for certain legally married couples (a) In general Subsection (d) of section 6511 (9) Rules relating to certain legally married couples (A) In general In the case of spouses— (i) who were married under state law (as such term is used in Revenue Ruling 2013–17) before September 16, 2013, and (ii) who were first treated as married for purposes of this title by the application of the holdings of Revenue Ruling 2013–17, with respect to the taxable year in which the marriage was entered into and any subsequent taxable year that, but for this paragraph, would be outside the 3-year period of limitation prescribed in subsection (a), such period 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 paragraph. The preceding sentence 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 of such spouses. (B) Waiver of limit on amount of claim In the case of a claim for credit or refund which is allowed by reason of subparagraph (A), the amount of the refund may exceed the portion of the tax paid within the period provided in subsection (b)(2) to the extent of the amount of the overpayment attributable to the change in the marital status of the spouses. . (b) Filing of joint return for prior taxable year Section 6013 (i) Joint return after filing separate returns for certain legally married couples (1) In general If— (A) 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, but for the fact that the spouses were first treated as married for purposes of this title by the application of the holdings of Revenue Ruling 2013–17 after the filing of the return of tax for such taxable year, and (B) the time prescribed by law for filing the return for such taxable year has expired, such individual and the individual's spouse may nevertheless make a joint return for such taxable year. (2) Rules and limitations (A) In general The election provided for under paragraph (1) may not be made after the later of— (i) the expiration of 3 years from the last date prescribed by law for filing the return for such taxable year (determined without regard to any extension of time granted to either spouse), or (ii) 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 subsection. (B) Other rules The rules of— (i) so much of subsection (b)(1) as follows the first sentence, (ii) subparagraphs (B), (C), and (D) of subsection (b)(2), and (iii) paragraphs (3), (4), and (5) of subsection (b), shall apply to a joint return under this subsection as if it were a joint return under subsection (b). .

Summary: Refund Equality Act of 2017 This bill amends the Internal Revenue Code to exempt certain same-sex couples who were legally married under state law from the three-year time limitation for filing: (1) a claim for a credit or refund of an overpayment of any tax, or (2) an election to file jointly after having filed separate returns. Certain legally married same-sex couples who were first treated as married for federal tax purposes by the application of the holdings of Revenue Ruling 2013-17 may file amended returns for previous years until the due date for the return for the year in which this bill is enacted. The bill applies only to amended returns and claims for a credit or refund that relate to a change in the marital status of the spouses. (In Revenue Ruling 2013-17, the Internal Revenue Service adopted a general rule recognizing, for federal tax purposes, the validity of a same-sex marriage that was valid in the state where it was entered into, regardless of the married couple's place of domicile.)