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Tax court allows deduction for woman‘s sex change

By DENISE LAVOIE, AP

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.

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.”

“I think what the court is saying is that surgery and hormone therapy for transgender people to alleviate the stress associated with gender identity disorder is legitimate medical care,” said Jennifer Levi, a GLAD attorney.

In a 2007 interview with The Associated Press, O‘Donnabhain said she underwent sex-reassignment surgery at age 57, after a tormented existence as a father, husband, Coast Guardsman and construction worker.

O‘Donnabhain, now 65, said she brought the lawsuit in an attempt to force the IRS to treat sex-change surgeries the same as appendectomies, heart surgeries and other deductible medical procedures.

O‘Donnabhain‘s lawyers argued that because gender-identity disorder is a recognized mental disorder that is generally treated with hormones and surgery, the costs are legitimate medical deductions.

“The evidence amply supports the conclusions that petitioner suffered from severe GID, that GID is a well-recognized and serious mental disorder, and that hormone therapy and sex reassignment surgery are considered appropriate and effective treatments for GID by psychiatrists and other mental health professionals who are knowledgeable concerning the condition,” the court said in its ruling.

The tax court said O‘Donnabhain could deduct as a medical care expense the costs associated with treating her gender-identity disorder, including sex-reassignment surgery and hormone therapy. But the court said she could not deduct the costs of breast augmentation surgery because it found that she had achieved breast enhancement through hormone treatments.

Copyright © 2008 The Associated Press. All rights reserved.

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