Yikes. Just, Yikes. Without a lot of fanfare or notice, the IRS is requiring Registered Domestic Partners (RDP’s) in the states of California, Washington, and Nevada to file their 2010 individual income tax returns (Form 1040) under the community property laws of their states.
There were a couple of Notices last year, one directly addressing California and another indirectly addresssing the subject overall, but many, if not most, people were taken by surprise about this. In fact, the IRS only published an updated Publication 555 in “December 2010” – posted to its website on 2/26/2011!
At any rate, that’s what tax seasons can be all about. Our clients, the software vendors, and we tax preparers have had to do a little scrambling in the last few weeks, and we are wary about the IRS computers properly processing the returns. But with any luck at all, things will go smoothly and we won’t see any odd notices coming back about people with a filing status of ‘single’ sending in community property returns. Hope their W-2 matching programs can handle it!