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Domestic Partnership - new tax law?

Knowing that I am in registered domestic partnership, one of my classmates sent me this link regarding new the IRS stance on "Income Splitting" and income reporting. Halfway thru the linked Lambda Legal document it states that Washington and Nevada are included in this new tax law.

"IRS Applies "Income-Splitting" Community Property
Treatment to
California's Registered Domestic Partners":
http://data.lambdalegal.org/publications/downloads/fs_the-irs-applies-income-splitting-community-property.pdf

I am dismayed because my lady attends SCCC on a free ride and I'm afraid adding any of my income to her reporting may compromise grant money. Plus I filed over a month ago via Turbo Tax. To my knowledge, the IRS hasn't really made this information widely available (or clear). I'm wondering how much of a stickler they'll be about registered domestic partners filing (or not filing) this way? I don't understand why it's not optional. Any insight, etc you can offer would be greatly appreciated.

Hardy asked in Taxes about 1 year ago | Report

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    I'm no tax accountant but it's in the general news (NPR today) that even the IRS is confused about the new law and people filing that way are getting notices that they have improperly filed.

    Also it is unclear whether you MAY treat property as communal or whether you MUST treat property as communal.

    Based on that I think you can file as you always have for this year and talk to a tax person so you are ready for next year.

    infernactual answered in Taxes about 1 year ago | Report
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