Title: Refund Equality Act of 2017
Policy area: Taxation

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.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1564 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1564

 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 13, 2017

   Ms. Warren (for herself, Mr. Schumer, Mr. Markey, Mr. Coons, Mr. 
Whitehouse, Ms. Hassan, Ms. Baldwin, Mrs. Gillibrand, Mr. Merkley, Mr. 
 Heinrich, Mrs. Feinstein, Mr. Wyden, Mr. Booker, Mr. Van Hollen, Mr. 
Blumenthal, Mr. Carper, Mr. Kaine, Mr. Franken, Ms. Hirono, Mr. Leahy, 
   Mr. Murphy, Mrs. Shaheen, Mr. Durbin, Mr. Warner, Mr. Udall, Mr. 
    Cardin, Mr. Reed, Mr. Sanders, Mrs. Murray, Ms. Duckworth, Ms. 
Cantwell, Ms. Harris, and Ms. Klobuchar) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Refund Equality Act of 2017''.

SEC. 2. EXTENSION OF PERIOD OF LIMITATION FOR CERTAIN LEGALLY MARRIED 
              COUPLES.

    (a) In General.--Subsection (d) of section 6511 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(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 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(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).''.
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