IRS to Recognize Domestic Partnerships

The Wall Street Journal reports that the Internal Revenue Service has decided to recognize the legal partnerships of same-sex couples. As a result of the IRS's ruling, same-sex couples in domestic partnerships in California will be required to report half of their combined incomes on individual tax returns. The change in policy could result in significant tax advantages for affected couples. It may also apply to other states that offer domestic partnerships, such as Washington and Nevada. TaxProf Blog has more here.