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O'Donnabhain tax case decided

Wed, 03 February 2010 04:47

nancy

http://hosted.ap.org/dynamic/stories/U/US_SEX_CHANGE_TAXES?S ITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2010- 02-02-18-19-55

Tax court allows deduction for woman's sex change

By DENISE LAVOIE
AP Legal Affairs Writer
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BOSTON (AP) -- The U.S. Tax Court ruled Tuesday that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation, a decision that could have broad implications for transgender people.

Rhiannon O'Donnabhain (oh-DON'-oh-vin), who was born a man, sued the Internal Revenue Service after the agency rejected a $5,000 deduction for approximately $25,000 in medical expenses associated with the sex-change surgery.

The IRS said the surgery was cosmetic and not medically necessary.

In its decision Tuesday, the tax court said the IRS position was "at best a superficial characterization of the circumstances" that is "thoroughly rebutted by the medical evidence."

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