PRIDE Act of 2019

II 116TH CONGRESS 1ST SESSION H. R. 3299 IN THE SENATE OF THE UNITED STATES JULY 25, 2019 Received AN ACT 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. VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 2 HR 3299 RDS Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Promoting Respect for 4 Individuals’ Dignity and Equality Act of 2019’’ or as the 5 ‘‘PRIDE Act of 2019’’. 6 SEC. 2. EXTENSION OF PERIOD OF LIMITATION FOR CER- 7 TAIN LEGALLY MARRIED COUPLES. 8 (a) IN GENERAL.—In the case of an individual first 9 treated as married for purposes of the Internal Revenue 10 Code of 1986 by the application of the holdings of Rev- 11 enue Ruling 2013–17— 12 (1) if such individual filed a return (other than 13 a joint return) for a taxable year ending before Sep- 14 tember 16, 2013, for which a joint return could have 15 been made by the individual and the individual’s 16 spouse but for the fact that such holdings were not 17 effective at the time of filing, such return shall be 18 treated as a separate return within the meaning of 19 section 6013(b) of such Code and the time pre- 20 scribed by section 6013(b)(2)(A) of such Code for 21 filing a joint return after filing a separate return 22 shall not expire before the date prescribed by law 23 (including extensions) for filing the return of tax for 24 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 3 HR 3299 RDS the taxable year that includes the date of the enact- 1 ment of this Act, and 2 (2) in the case of a joint return filed pursuant 3 to paragraph (1)— 4 (A) the period of limitation prescribed by 5 section 6511(a) of such Code for any such tax- 6 able year shall be extended until the date pre- 7 scribed by law (including extensions) for filing 8 the return of tax for the taxable year that in- 9 cludes the date of the enactment of this Act, 10 and 11 (B) section 6511(b)(2) of such Code shall 12 not apply to any claim of credit or refund with 13 respect to such return. 14 (b) AMENDMENTS, ETC. RESTRICTED TO CHANGE IN 15 MARITAL STATUS.—Subsection (a) shall apply only with 16 respect to amendments to the return of tax, and claims 17 for credit or refund, relating to a change in the marital 18 status for purposes of the Internal Revenue Code of 1986 19 of the individual. 20 SEC. 3. RULES RELATING TO ALL LEGALLY MARRIED COU- 21 PLES. 22 (a) IN GENERAL.—The Internal Revenue Code of 23 1986 is amended— 24 (1) in section 21(d)(2)— 25 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 4 HR 3299 RDS (A) by striking ‘‘HIMSELF’’ in the heading 1 and inserting ‘‘SELF’’; and 2 (B) by striking ‘‘any husband and wife’’ 3 and inserting ‘‘any married couple’’; 4 (2) in section 22(e)(1)— 5 (A) by striking ‘‘husband and wife who 6 live’’ and inserting ‘‘married couple who lives’’; 7 and 8 (B) by striking ‘‘the taxpayer and his 9 spouse’’ and inserting ‘‘the taxpayer and the 10 spouse of the taxpayer’’; 11 (3) in section 38(c)(6)(A), by striking ‘‘husband 12 or wife who files’’ and inserting ‘‘married individual 13 who files’’; 14 (4) in section 42(j)(5)(C), by striking clause (i) 15 and inserting the following new clause: 16 ‘‘(i) MARRIED COUPLE TREATED AS 1 17 PARTNER.—For purposes of subparagraph 18 (B), individuals married to one another 19 (and their estates) shall be treated as 1 20 partner.’’; 21 (5) in section 62(b)(3)— 22 (A) in subparagraph (A)— 23 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 5 HR 3299 RDS (i) by striking ‘‘husband and wife who 1 lived apart’’ and inserting ‘‘married couple 2 who lived apart’’; and 3 (ii) by striking ‘‘the taxpayer and his 4 spouse’’ and inserting ‘‘the taxpayer and 5 the spouse of the taxpayer’’; and 6 (B) in subparagraph (D), by striking ‘‘hus- 7 band and wife’’ and inserting ‘‘married couple’’; 8 (6) in section 121— 9 (A) in subsection (b)(2), by striking ‘‘hus- 10 band and wife who make’’ and inserting ‘‘mar- 11 ried couple who makes’’; and 12 (B) in subsection (d)(1), by striking ‘‘hus- 13 band and wife make’’ and inserting ‘‘married 14 couple makes’’; 15 (7) in section 165(h)(4)(B), by striking ‘‘hus- 16 band and wife’’ and inserting ‘‘married couple’’; 17 (8) in section 179(b)(4), by striking ‘‘a husband 18 and wife filing’’ and inserting ‘‘individuals married 19 to one another who file’’; 20 (9) in section 213(d)(8), by striking ‘‘status as 21 husband and wife’’ and inserting ‘‘marital status’’; 22 (10) in section 219(g)(4), in the matter pre- 23 ceding subparagraph (A), by striking ‘‘A husband 24 and wife’’ and inserting ‘‘Married individuals’’; 25 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 6 HR 3299 RDS (11) in section 274(b)(2)(B), by striking ‘‘hus- 1 band and wife’’ and inserting ‘‘married couple’’; 2 (12) in section 643(f), by striking ‘‘husband 3 and wife’’ in the second sentence and inserting 4 ‘‘married couple’’; 5 (13) in section 761(f)— 6 (A) in paragraph (1), by striking ‘‘husband 7 and wife’’ and inserting ‘‘married couple’’; and 8 (B) in paragraph (2)(A), by striking ‘‘hus- 9 band and wife’’ and inserting ‘‘married couple’’; 10 (14) in section 911— 11 (A) in subsection (b)(2), by striking sub- 12 paragraph (C) and inserting the following new 13 subparagraph: 14 ‘‘(C) TREATMENT OF COMMUNITY IN- 15 COME.—In applying subparagraph (A) with re- 16 spect to amounts received from services per- 17 formed by a married individual which are com- 18 munity income under community property laws 19 applicable to such income, the aggregate 20 amount which may be excludable from the gross 21 income of such individual and such individual’s 22 spouse under subsection (a)(1) for any taxable 23 year shall equal the amount which would be so 24 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 7 HR 3299 RDS excludable if such amounts did not constitute 1 community income.’’; and 2 (B) in subsection (d)(9)(A), by striking 3 ‘‘where a husband and wife each have’’ and in- 4 serting ‘‘where both spouses have’’; 5 (15) in section 1244(b)(2), by striking ‘‘a hus- 6 band and wife filing’’; 7 (16) in section 1272(a)(2)(D), by striking 8 clause (iii) and inserting the following new clause: 9 ‘‘(iii) TREATMENT OF A MARRIED 10 COUPLE.—For purposes of this subpara- 11 graph, a married couple shall be treated as 12 1 person. The preceding sentence shall not 13 apply where the spouses lived apart at all 14 times during the taxable year in which the 15 loan is made.’’; 16 (17) in section 1313(c)(1), by striking ‘‘hus- 17 band and wife’’ and inserting ‘‘spouses’’; 18 (18) in section 1361(c)(1)(A)(i), by striking ‘‘a 19 husband and wife’’ and inserting ‘‘a married cou- 20 ple’’; 21 (19) in section 2040(b), by striking ‘‘CERTAIN 22 JOINT INTERESTS OF HUSBAND AND WIFE’’ in the 23 heading and inserting ‘‘CERTAIN JOINT INTERESTS 24 OF MARRIED COUPLE’’; 25 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 8 HR 3299 RDS (20) in section 2513— 1 (A) by striking ‘‘GIFT BY HUSBAND OR 2 WIFE TO THIRD PARTY’’ in the heading and 3 inserting ‘‘GIFT BY SPOUSE TO THIRD 4 PARTY’’; and 5 (B) by striking paragraph (1) of sub- 6 section (a) and inserting the following new 7 paragraph: 8 ‘‘(1) IN GENERAL.—A gift made by one indi- 9 vidual to any person other than such individual’s 10 spouse shall, for the purposes of this chapter, be 11 considered as made one-half by the individual and 12 one-half by such individual’s spouse, but only if at 13 the time of the gift each spouse is a citizen or resi- 14 dent of the United States. This paragraph shall not 15 apply with respect to a gift by an individual of an 16 interest in property if such individual creates in the 17 individual’s spouse a general power of appointment, 18 as defined in section 2514(c), over such interest. For 19 purposes of this section, an individual shall be con- 20 sidered as the spouse of another only if the indi- 21 vidual is married to the individual’s spouse at the 22 time of the gift and does not remarry during the re- 23 mainder of the calendar year.’’; 24 (21) in section 2516— 25 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 9 HR 3299 RDS (A) by striking ‘‘Where a husband and 1 wife enter’’ and inserting the following: 2 ‘‘(a) IN GENERAL.—Where a married couple enters’’; 3 and 4 (B) by adding at the end the following new 5 subsection: 6 ‘‘(b) SPOUSE.—For purposes of this section, if the 7 spouses referred to are divorced, wherever appropriate to 8 the meaning of this section, the term ‘spouse’ shall read 9 ‘former spouse’.’’; 10 (22) in section 5733(d)(2), by striking ‘‘hus- 11 band or wife’’ and inserting ‘‘married individual’’; 12 (23) in section 6013— 13 (A) by striking ‘‘JOINT RETURNS OF IN- 14 COME TAX BY HUSBAND AND WIFE’’ in the 15 heading and inserting ‘‘JOINT RETURNS OF 16 INCOME TAX BY A MARRIED COUPLE’’; 17 (B) in subsection (a), in the matter pre- 18 ceding paragraph (1), by striking ‘‘husband and 19 wife’’ and inserting ‘‘married couple’’; 20 (C) in subsection (a)(1), by striking ‘‘ei- 21 ther the husband or wife’’ and inserting ‘‘either 22 spouse’’; 23 (D) in subsection (a)(2)— 24 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 10 HR 3299 RDS (i) by striking ‘‘husband and wife’’ 1 and inserting ‘‘spouses’’; and 2 (ii) by striking ‘‘his taxable year’’ and 3 inserting ‘‘such spouse’s taxable year’’; 4 (E) in subsection (a)(3)— 5 (i) by striking ‘‘his executor or admin- 6 istrator’’ and inserting ‘‘the decedent’s ex- 7 ecutor or administrator’’; 8 (ii) by striking ‘‘with respect to both 9 himself and the decedent’’ and inserting 10 ‘‘with respect to both the surviving spouse 11 and the decedent’’; and 12 (iii) by striking ‘‘constitute his sepa- 13 rate return’’ and inserting ‘‘constitute the 14 survivor’s separate return’’; 15 (F) in subsection (b), by striking para- 16 graph (1) and inserting the following new para- 17 graph: 18 ‘‘(1) IN GENERAL.—Except as provided in para- 19 graph (2), if an individual has filed a separate re- 20 turn for a taxable year for which a joint return 21 could have been made by the individual and the indi- 22 vidual’s spouse under subsection (a) and the time 23 prescribed by law for filing the return for such tax- 24 able year has expired, such individual and such 25 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 11 HR 3299 RDS spouse may nevertheless make a joint return for 1 such taxable year. A joint return filed under this 2 subsection shall constitute the return of the indi- 3 vidual and the individual’s spouse for such taxable 4 year, and all payments, credits, refunds, or other re- 5 payments made or allowed with respect to the sepa- 6 rate return of either spouse for such taxable year 7 shall be taken into account in determining the extent 8 to which the tax based upon the joint return has 9 been paid. If a joint return is made under this sub- 10 section, any election (other than the election to file 11 a separate return) made by either spouse in a sepa- 12 rate return for such taxable year with respect to the 13 treatment of any income, deduction, or credit of 14 such spouse shall not be changed in the making of 15 the joint return where such election would have been 16 irrevocable if the joint return had not been made. If 17 a joint return is made under this subsection after 18 the death of either spouse, such return with respect 19 to the decedent can be made only by the decedent’s 20 executor or administrator.’’; 21 (G) in subsection (c), by striking ‘‘husband 22 and wife’’ and inserting ‘‘spouses’’; 23 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 12 HR 3299 RDS (H) in subsection (d)(1), by striking ‘‘sta- 1 tus as husband and wife’’ and inserting ‘‘the 2 marital status with respect to each other’’; 3 (I) in subsection (d)(2), by striking ‘‘his 4 spouse’’ and inserting ‘‘the spouse of the indi- 5 vidual’’; 6 (J) in subsection (f)(2)(B), by striking 7 ‘‘such individual, his spouse, and his estate 8 shall be determined as if he were alive’’ and in- 9 serting ‘‘such individual, the individual’s 10 spouse, and the individual’s estate shall be de- 11 termined as if the individual were alive’’; and 12 (K) in subsection (f)(3)— 13 (i) in subparagraph (A), by striking 14 ‘‘for which he is entitled’’ and inserting 15 ‘‘for which such member is entitled’’; and 16 (ii) in subparagraph (B), by striking 17 ‘‘for which he is entitled’’ and inserting 18 ‘‘for which such employee is entitled’’; 19 (24) in section 6014(b), by striking ‘‘husband 20 and wife’’ in the second sentence and inserting ‘‘a 21 married couple’’; 22 (25) in section 6017, by striking ‘‘husband and 23 wife’’ and inserting ‘‘married couple’’; 24 VerDate Sep 11 2014 00:24 Aug 02, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3299.RDS H3299 pamtmann on DSKBFK8HB2PROD with BILLS 13 HR 3299 RDS (26) in section 6096(a), by striking ‘‘of hus- 1 band and wife having’’ and inserting ‘‘reporting’’; 2 (27) in section 6166(b)(2), by striking subpara- 3 graph (B) and inserting the following new subpara- 4 graph: 5 ‘‘(B) CERTAIN INTERESTS HELD BY MAR- 6 RIED COUPLE.—Stock or a partnership interest 7 which— 8 ‘‘(i) is community property of a mar- 9 ried couple (or the income from which is 10 community income) under the applicable 11 community property law of a State, or 12 ‘‘(ii) is held by a married couple as 13 joint tenants, tenants b [Text truncated for display. 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