www.thedesertsun.com/news/stories2004/business/20040629225729.shtml
By Howard Gordon
Special to The Desert Sun
June 30, 2004
The Internal Revenue Service recently weighed in on the same-sex marriage debate, issuing a letter stating that same-sex couples are prohibited by federal law from filing joint tax returns even though a state may recognize a union of two people of the same sex as a legal marriage.
The IRS determination was based on the fact that the Defense of Marriage Act defines "marriage" for purposes of administering federal law, which would include federal tax laws, as the "legal union between one man and one woman as husband and wife." The letter went on to indicate that it further defines a "spouse" as a person of the opposite sex who is a husband or wife.
A group called Public Advocate had requested this letter. Eugene A. Delgaudio, president of the group, said his organization was concerned that same-sex marriages could present a significant potential for federal and state income tax evasion. His organization’s website indicated this is "a victory for the American family" and quoted excerpts from the IRS letter.
On the issue of possible income tax evasion, the people at Public Advocate probably have little need to worry. According to a study that was done in January 2000 titled "Wedding Bell Blues: The Income Consequences of Legalizing Same Sex Marriage," there really is no tax benefit to same-sex couples filing a joint return. This report, done through a number of universities, indicated that many couples -- especially two earner couples with similar incomes -- actually pay a marriage tax that is higher than if they were single. They estimated that, at that time, legalizing these marriages for income tax purposes would actually lead to an annual increase in the federal government income taxes of between $300 million and $1.3 billion a year based on the percent of homosexual relationships and the percent of couples who might marry.