No surprise in IRS letter on dom. partner benefits.(domestic partner)

National Underwriter Life & Health-Financial Services Edition, February, 1996 by Niedzielski, Joe

The Internal Revenue Service has issued a private letter ruling that holds that employees must pay taxes on employer-provided benefits granted under domestic partner programs unless the employee is providing over half of the partner's support. Health insurance companies do not believe that the ruling will adversely affect their business as domestic partner coverage usually is provided at the request of their clients.

Unless an employee provides more than half of a domestic partner's support, the employee must pay tax on benefits extended to the companion from an employer-provided accident or health plan, according to a private-letter ruling which the Internal Revenue Service released last week.

Some health insurers who provide domestic partner coverage in their...

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