Section 1 Short title
This Act may be cited as the “Refund Equality Act of 2017”.
Refund Equality Act of 2017
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.
Sec. 2 Extension of period of limitation for certain legally married couples
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,
“(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.”
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,
“(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),”