PRIDE Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3815 To permit legally married same-sex couples to amend their filing status for income tax returns outside the statute of limitations, to amend the Internal Revenue Code of 1986 to clarify that all provisions shall apply to legally married same-sex couples in the same manner as other married couples, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 11, 2021 Ms. CHU (for herself, Mr. LEVIN of Michigan, Mr. BEYER, Mr. BLUMENAUER, Ms. BLUNT ROCHESTER, Mr. DANNY K. DAVIS of Illinois, Ms. DELBENE, Mr. HIGGINS of New York, Mr. KILDEE, Mr. LARSON of Con- necticut, Mrs. CAROLYN B. MALONEY of New York, Ms. MOORE of Wis- consin, Ms. NORTON, Mr. PANETTA, Mr. PASCRELL, Mr. SUOZZI, and Mr. WELCH) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To permit legally married same-sex couples to amend their filing status for income tax returns outside the statute of limitations, to amend the Internal Revenue Code of 1986 to clarify that all provisions shall apply to legally married same-sex couples in the same manner as other married couples, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 2 •HR 3815 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Promoting Respect for 2 Individuals’ Dignity and Equality Act of 2021’’ or as the 3 ‘‘PRIDE Act of 2021’’. 4 SEC. 2. EXTENSION OF PERIOD OF LIMITATION FOR CER- 5 TAIN LEGALLY MARRIED COUPLES. 6 (a) IN GENERAL.—In the case of an individual first 7 treated as married for purposes of the Internal Revenue 8 Code of 1986 by the application of the holdings of Rev- 9 enue Ruling 2013–17— 10 (1) if such individual filed a return (other than 11 a joint return) for a taxable year ending before Sep- 12 tember 16, 2013, for which a joint return could have 13 been made by the individual and the individual’s 14 spouse but for the fact that such holdings were not 15 effective at the time of filing, such return shall be 16 treated as a separate return within the meaning of 17 section 6013(b) of such Code and the time pre- 18 scribed by section 6013(b)(2)(A) of such Code for 19 filing a joint return after filing a separate return 20 shall not expire before the date prescribed by law 21 (including extensions) for filing the return of tax for 22 the taxable year that includes the date of the enact- 23 ment of this Act; and 24 (2) in the case of a joint return filed pursuant 25 to paragraph (1)— 26 VerDate Sep 11 2014 23:49 Jul 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 3 •HR 3815 IH (A) the period of limitation prescribed by 1 section 6511(a) of such Code for any such tax- 2 able year shall be extended until the date pre- 3 scribed by law (including extensions) for filing 4 the return of tax for the taxable year that in- 5 cludes the date of the enactment of this Act; 6 and 7 (B) section 6511(b)(2) of such Code shall 8 not apply to any claim of credit or refund with 9 respect to such return. 10 (b) AMENDMENTS, ETC. RESTRICTED TO CHANGE IN 11 MARITAL STATUS.—Subsection (a) shall apply only with 12 respect to amendments to the return of tax, and claims 13 for credit or refund, relating to a change in the marital 14 status for purposes of the Internal Revenue Code of 1986 15 of the individual. 16 SEC. 3. RULES RELATING TO ALL LEGALLY MARRIED COU- 17 PLES. 18 (a) IN GENERAL.—The Internal Revenue Code of 19 1986 is amended— 20 (1) in section 21(d)(2)— 21 (A) by striking ‘‘HIMSELF’’ in the heading 22 and inserting ‘‘SELF’’; and 23 (B) by striking ‘‘any husband and wife’’ 24 and inserting ‘‘any married couple’’; 25 VerDate Sep 11 2014 23:49 Jul 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 4 •HR 3815 IH (2) in section 22(e)(1)— 1 (A) by striking ‘‘husband and wife who 2 live’’ and inserting ‘‘married couple who lives’’; 3 and 4 (B) by striking ‘‘the taxpayer and his 5 spouse’’ and inserting ‘‘the taxpayer and the 6 spouse of the taxpayer’’; 7 (3) in section 38(c)(6)(A), by striking ‘‘husband 8 or wife who files’’ and inserting ‘‘married individual 9 who files’’; 10 (4) in section 42(j)(5)(C), by striking clause (i) 11 and inserting the following new clause: 12 ‘‘(i) MARRIED COUPLE TREATED AS 1 13 PARTNER.—For purposes of subparagraph 14 (B), individuals married to one another 15 (and their estates) shall be treated as 1 16 partner.’’; 17 (5) in section 62(b)(3)— 18 (A) in subparagraph (A)— 19 (i) by striking ‘‘husband and wife who 20 lived apart’’ and inserting ‘‘married couple 21 who lived apart’’; and 22 (ii) by striking ‘‘the taxpayer and his 23 spouse’’ and inserting ‘‘the taxpayer and 24 the spouse of the taxpayer’’; and 25 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 5 •HR 3815 IH (B) in subparagraph (D), by striking ‘‘hus- 1 band and wife’’ and inserting ‘‘married couple’’; 2 (6) in section 121— 3 (A) in subsection (b)(2), by striking ‘‘hus- 4 band and wife who make’’ and inserting ‘‘mar- 5 ried couple who makes’’; and 6 (B) in subsection (d)(1), by striking ‘‘hus- 7 band and wife make’’ and inserting ‘‘married 8 couple makes’’; 9 (7) in section 165(h)(4)(B), by striking ‘‘hus- 10 band and wife’’ and inserting ‘‘married couple’’; 11 (8) in section 179(b)(4), by striking ‘‘a husband 12 and wife filing’’ and inserting ‘‘individuals married 13 to one another who file’’; 14 (9) in section 213(d)(8), by striking ‘‘status as 15 husband and wife’’ and inserting ‘‘marital status’’; 16 (10) in section 219(g)(4), in the matter pre- 17 ceding subparagraph (A), by striking ‘‘A husband 18 and wife’’ and inserting ‘‘Married individuals’’; 19 (11) in section 274(b)(2)(B), by striking ‘‘hus- 20 band and wife’’ and inserting ‘‘married couple’’; 21 (12) in section 643(f), by striking ‘‘husband 22 and wife’’ in the second sentence and inserting 23 ‘‘married couple’’; 24 (13) in section 761(f)— 25 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 6 •HR 3815 IH (A) in paragraph (1), by striking ‘‘husband 1 and wife’’ and inserting ‘‘married couple’’; and 2 (B) in paragraph (2)(A), by striking ‘‘hus- 3 band and wife’’ and inserting ‘‘married couple’’; 4 (14) in section 911— 5 (A) in subsection (b)(2), by striking sub- 6 paragraph (C) and inserting the following new 7 subparagraph: 8 ‘‘(C) TREATMENT OF COMMUNITY IN- 9 COME.—In applying subparagraph (A) with re- 10 spect to amounts received from services per- 11 formed by a married individual which are com- 12 munity income under community property laws 13 applicable to such income, the aggregate 14 amount which may be excludable from the gross 15 income of such individual and such individual’s 16 spouse under subsection (a)(1) for any taxable 17 year shall equal the amount which would be so 18 excludable if such amounts did not constitute 19 community income.’’; and 20 (B) in subsection (d)(9)(A), by striking 21 ‘‘where a husband and wife each have’’ and in- 22 serting ‘‘where both spouses have’’; 23 (15) in section 1244(b)(2), by striking ‘‘a hus- 24 band and wife filing’’; 25 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 7 •HR 3815 IH (16) in section 1272(a)(2)(D), by striking 1 clause (iii) and inserting the following new clause: 2 ‘‘(iii) TREATMENT OF A MARRIED 3 COUPLE.—For purposes of this subpara- 4 graph, a married couple shall be treated as 5 1 person. The preceding sentence shall not 6 apply where the spouses lived apart at all 7 times during the taxable year in which the 8 loan is made.’’; 9 (17) in section 1313(c)(1), by striking ‘‘hus- 10 band and wife’’ and inserting ‘‘spouses’’; 11 (18) in section 1361(c)(1)(A)(i), by striking ‘‘a 12 husband and wife’’ and inserting ‘‘a married cou- 13 ple’’; 14 (19) in section 2040(b), by striking ‘‘CERTAIN 15 JOINT INTERESTS OF HUSBAND AND WIFE’’ in the 16 heading and inserting ‘‘CERTAIN JOINT INTERESTS 17 OF MARRIED COUPLE’’; 18 (20) in section 2513— 19 (A) by striking ‘‘GIFT BY HUSBAND OR 20 WIFE TO THIRD PARTY’’ in the heading and 21 inserting ‘‘GIFT BY SPOUSE TO THIRD 22 PARTY’’; and 23 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 8 •HR 3815 IH (B) by striking paragraph (1) of sub- 1 section (a) and inserting the following new 2 paragraph: 3 ‘‘(1) IN GENERAL.—A gift made by one indi- 4 vidual to any person other than such individual’s 5 spouse shall, for the purposes of this chapter, be 6 considered as made one-half by the individual and 7 one-half by such individual’s spouse, but only if at 8 the time of the gift each spouse is a citizen or resi- 9 dent of the United States. This paragraph shall not 10 apply with respect to a gift by an individual of an 11 interest in property if such individual creates in the 12 individual’s spouse a general power of appointment, 13 as defined in section 2514(c), over such interest. For 14 purposes of this section, an individual shall be con- 15 sidered as the spouse of another only if the indi- 16 vidual is married to the individual’s spouse at the 17 time of the gift and does not remarry during the re- 18 mainder of the calendar year.’’; 19 (21) in section 2516— 20 (A) by striking ‘‘Where a husband and 21 wife enter’’ and inserting the following: 22 ‘‘(a) IN GENERAL.—Where a married couple enters’’; 23 and 24 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 9 •HR 3815 IH (B) by adding at the end the following new 1 subsection: 2 ‘‘(b) SPOUSE.—For purposes of this section, if the 3 spouses referred to are divorced, wherever appropriate to 4 the meaning of this section, the term ‘spouse’ shall read 5 ‘former spouse’.’’; 6 (22) in section 5733(d)(2), by striking ‘‘hus- 7 band or wife’’ and inserting ‘‘married individual’’; 8 (23) in section 6013— 9 (A) by striking ‘‘JOINT RETURNS OF IN- 10 COME TAX BY HUSBAND AND WIFE’’ in the 11 heading and inserting ‘‘JOINT RETURNS OF 12 INCOME TAX BY A MARRIED COUPLE’’; 13 (B) in subsection (a), in the matter pre- 14 ceding paragraph (1), by striking ‘‘husband and 15 wife’’ and inserting ‘‘married couple’’; 16 (C) in subsection (a)(1), by striking ‘‘ei- 17 ther the husband or wife’’ and inserting ‘‘either 18 spouse’’; 19 (D) in subsection (a)(2)— 20 (i) by striking ‘‘husband and wife’’ 21 and inserting ‘‘spouses’’; and 22 (ii) by striking ‘‘his taxable year’’ and 23 inserting ‘‘such spouse’s taxable year’’; 24 (E) in subsection (a)(3)— 25 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 10 •HR 3815 IH (i) by striking ‘‘his executor or admin- 1 istrator’’ and inserting ‘‘the decedent’s ex- 2 ecutor or administrator’’; 3 (ii) by striking ‘‘with respect to both 4 himself and the decedent’’ and inserting 5 ‘‘with respect to both the surviving spouse 6 and the decedent’’; and 7 (iii) by striking ‘‘constitute his sepa- 8 rate return’’ and inserting ‘‘constitute the 9 survivor’s separate return’’; 10 (F) in subsection (b), by striking para- 11 graph (1) and inserting the following new para- 12 graph: 13 ‘‘(1) IN GENERAL.—Except as provided in para- 14 graph (2), if an individual has filed a separate re- 15 turn for a taxable year for which a joint return 16 could have been made by the individual and the indi- 17 vidual’s spouse under subsection (a) and the time 18 prescribed by law for filing the return for such tax- 19 able year has expired, such individual and such 20 spouse may nevertheless make a joint return for 21 such taxable year. A joint return filed under this 22 subsection shall constitute the return of the indi- 23 vidual and the individual’s spouse for such taxable 24 year, and all payments, credits, refunds, or other re- 25 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 11 •HR 3815 IH payments made or allowed with respect to the sepa- 1 rate return of either spouse for such taxable year 2 shall be taken into account in determining the extent 3 to which the tax based upon the joint return has 4 been paid. If a joint return is made under this sub- 5 section, any election (other than the election to file 6 a separate return) made by either spouse in a sepa- 7 rate return for such taxable year with respect to the 8 treatment of any income, deduction, or credit of 9 such spouse shall not be changed in the making of 10 the joint return where such election would have been 11 irrevocable if the joint return had not been made. If 12 a joint return is made under this subsection after 13 the death of either spouse, such return with respect 14 to the decedent can be made only by the decedent’s 15 executor or administrator.’’; 16 (G) in subsection (c), by striking ‘‘husband 17 and wife’’ and inserting ‘‘spouses’’; 18 (H) in subsection (d)(1), by striking ‘‘sta- 19 tus as husband and wife’’ and inserting ‘‘the 20 marital status with respect to each other’’; 21 (I) in subsection (d)(2), by striking ‘‘his 22 spouse’’ and inserting ‘‘the spouse of the indi- 23 vidual’’; 24 VerDate Sep 11 2014 17:23 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3815.IH H3815 lotter on DSK11XQN23PROD with BILLS 12 •HR 3815 IH (J) in subsection (f)(2)(B), by striking 1 ‘‘such individual, his spouse, and his estate 2 shall be determined as if he were alive’’ and in- 3 serting ‘‘such individual, the individual’s 4 spouse, and the individual’s estate shall be de- 5 termined as if the individual were alive’’; and 6 (K) in subsection (f)(3)— 7 (i) in subparagraph (A), by striking 8 ‘‘for which he is entitled’’ and inserting 9 ‘‘for which such member is entitled’’; and 10 (ii) in subparagraph (B), by striking 11 ‘‘for which he is entitled’’ and inserting 12 ‘‘for which such employee is entitled’’; 13 (24) in section 6014(b), by striking ‘‘husband 14 and wife’’ in the second sentence and inserting ‘‘a 15 married couple’’; 16 (25) in section 6017, by striking ‘‘husband and 17 wife’’ and inserting ‘‘married couple’’; 18 (26) in section 60 [Text truncated for display. 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