Tax-Season Tips for Same-Sex Registered Domestic Partners Help Make Sense of New IRS Rules

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http://eon.businesswire.com/news/eon/20120105006556/en/gay/lesbian/taxes

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“The good news is, there are simple steps same-sex couples can take to make tax season a lot easier,” Wiesenberg says. Here are his top five tax tips for gay and lesbian registered domestic partners:

1) Consult with a qualified tax adviser
“At-home software programs are great for simple tax situations, but registered domestic partners can have enormously complicated returns,” Wiesenberg said. “The new Federal guidelines obligate RDPs and same-sex married couples to combine their income and split it. Most at-home tax software just isn’t capable of handling these situations.”

2) Understand your partner’s financial situation
If you don’t fully understand both partners’ financial situations, including income and debt, now is the time to have those conversations. “If you don’t already know everything there is to know about your partner’s finances, by the end of April, you will,” Wiesenberg says.

3) Put your financial documents together
You may keep separate financial records, but the IRS sees you as a couple; compile your documents as such. Keep items separate – but ready to be combined at a moment’s notice. Also make sure you have your RDP documentation available.

4) File powers of attorney and tax authorizations
Complete IRS Form 8821 and IRS Form 2848 and send them to the IRS prior to seeing a tax preparer. “You’re filing as a couple, but the Federal government and IRS don’t permit you to talk about each others’ taxes or make decisions without the proper authorizations,” Wiesenberg notes.

5) Get ready to take notes
Both spouses should be prepared to keep detailed records of their conversations – whether with a tax adviser or, especially, when communicating with the IRS.