Does IRS Ruling 9231062 affect retired member of staff feminine carrying a DP mannish on their condition plan?
Answers: Well, not directly as private notification rulings (PLR) do not have binding effect beyond the party involved. But the reasoning in that PLR does echo IRS policy and current law.
For the most factor, health assistance benefits extended to the spouse and/or children of an employee are exempt from taxes. But one and the same contributions made to any other individual — including registered domestic partners and dependents of domestic partner — are not exempt from taxes, unless those receiving benefits unite the definition of “dependent” under the Internal Revenue Code (IRC).
IRC Section 152 define a “dependent” as one who:
receives partially of his/her total annual support from the taxpayer, is a member of the taxpayer’s residence, which is the dependent’s principle place of residence throughout the year, and enjoy a gross income of less than $3400.
All benefits extended to a toll payer’s non-dependent, non-spousal family member are, therefore, taxable.
While the policy about the taxability of domestic partnership benefits is not explicitly stated in the IRC, several private memo rulings from the IRS have followed this interpretation (see PLR 971708, PLR 9603011, PLR 9431017, PLR 9231062).
Hope this help.