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BOSTON — The U.S. Tax Court has ruled that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation in a decision that could have wide-ranging consequences.
Rhiannon O’Donnabhain, born a man, sued the Internal Revenue Service in 2007. The agency had disallowed a $5,000 deduction for $25,000 in medical expenses associated with sex-change surgery.
The IRS had said the surgery was cosmetic and not medically necessary. The tax court said the IRS position was rebutted by medical evidence at the Boston trial.
