IRS deduction

[Lillith1959]

Can anyone advise me as to whether the IRS ever settled the lawsuit brought by Ms. O'Donnabhain regarding SRS? I never saw a decision by the court for or against.

[Flan]

To what I can find, the plaintiff (Rhiannon G. O'Donnabhain) was denied ability to use srs expenses as a deduction for tax purposes.

Code Select Expand


                                                                        11/10/09
                   U N I T E D  S T A T E S  T A X  C O U R T
                           D O C K E T  E N T R I E S

  Docket No.   6402-06                                                     INDEX
   Rhiannon G. O'Donnabhain
                     v. COMMISSIONER OF INTERNAL REVENUE



Petitioner Counsel                      Respondent Counsel
------------------                      ------------------
LK0127    (Service Attorney)
NO.  6    Loewy,Karen L.
Gay & Lesbian Advocates, etc.
Suite 800
30 Winter Street
Boston, MA 02108

LJ1038    Levi,Jennifer L.
GLAD
Suite 800
30 Winter Street
Boston, MA 02108

KB0214    Klein,Bennett H.
GLAD
Suite 800
30 Winter Street
Boston, MA 02108

HW0579    Halmkin,William E.
Sullivan & Worcester
One Post Office Square
Boston, MA 02109-2129

ND0156    Nagle,David J.
Sullivan & Worcester
One Post Office Square
Boston, MA 02109-2129

SA0868    Sheridan,Amy E.
Sullivan & Worcester
One Post Office Square
Boston, MA 02109
                                                                                     
  NO.   DATE  EVENT       FILINGS AND PROCEEDINGS      ACT/STAT DTE  SERVED    M     
                                                                                     
0001 04/03/06 PF   PETITION Filed:Fee Paid                         R 04/05/06       
0002 04/03/06 DPT  DESIGNATION of Trial at Boston,                 R 04/05/06       
                    MA                                                               
0003 04/12/06 MOTP MOTION by petr. for protective                  R 04/19/06       
                    order. w/Exhs. (C/S 4/11/06)       ORD 06/21/06                 
                                                                                     
0004 04/18/06 EA   ENTRY OF APPEARANCE by Jennifer                                 
                    L. Levi                                         R 04/18/06       
0005 04/18/06 EA   ENTRY OF APPEARANCE by Bennett H.                               
                     Klein                                          R 04/18/06       
0006 04/19/06 O    ORDER record is temporarily                                     
                    sealed. Resp. by 5-15-06 file a                 B 04/19/06 C     
                    response to motion for protective order. Copy of this order     
                    & mot for procective order served on Respondent by personal     
                    service.                                                         
0007 05/15/06 OBJ  OBJECTION by Resp. to Petr's Mot.                               
                     for Protective Order. (C/S                                     
                    5/15/06)                                                         
0008 05/23/06 OAJ  ORDER that case is assigned to                                   
                    Judge Thornton.  For purposes                   B 05/24/06 C     
                    of disposition of Petr's Motion for Protective Order.           
0009 05/26/06 ACS  ANSWER (C/S 05/25/06).                                           
0010 06/21/06 O    ORDER Petr's. Mot (3) for                                       
                    protective order is granted in     GD  06/21/06 B 06/21/06 C     
                    that petr's. address and SSN. are sealed. Temporary             
                    protective order of 4-19-06 is lifted.                           
0011 07/10/06 RCS  REPLY (C/S 07/07/06)                                             
0012 12/15/06 NTD  NOTICE of Trial on 05/21/07 at                                   
                    Boston, MA.                                     B 12/15/06 C     
0013 12/15/06 SPTO STANDING PRE-TRIAL ORDER attached                               
                     to Notice of Trial                             B 12/15/06 C     
0014 01/29/07 EA   ENTRY OF APPEARANCE by William E.                               
                     Halmkin.                                       R 01/30/07       
0015 01/29/07 EA   ENTRY OF APPEARANCE by David J.                                 
                    Nagle.                                          R 01/30/07       
0016 01/29/07 EA   ENTRY OF APPEARANCE Amy E.                                       
                    Sheridan.                                       R 01/30/07       
0017 03/07/07 RAR  REQUEST FOR ADMISSIONS by Resp.                                 
                    (C/S 03/06/07)                                                   
0018 04/06/07 APPL APPLICATION by petr. to take                                     
                    deposition to Pertuate             ORD 07/31/07 R 05/01/07       
                    Testimony of Toby Meltzer, M.D. 7025 North Scottsdale Road,     
                    Suite 302, Scottsdale, AZ 85253. (Per Judge)                     
0019 04/09/07 MOTR MOTION by resp. to Compel docus.                                 
                    w/exhs. (C/S 4/6/07)               ORD 04/27/07                 
0020 04/17/07 RRAP RESPONSE TO REQ. FOR ADMISSIONS                                 
                    by Petr.(C/S 04/05/07)                                           
0021 04/17/07 O    ORDER resp. by 4/23/07 submit a                                 
                    supplement to Mot. to Compel                    B 04/17/07 C     
                    Prod. of Documents.                                             
0022 04/23/07 SUPL SUPPLEMENT by resp. to Mot. to                                   
                    Compel documents. (C/S 4/20/07)    ORD 04/27/07                 
0023 04/27/07 O    ORDER resp's Mot. to compel                                     
                    documents, as suppl. is gr. in                  B 05/01/07 C     
                    part. & denied in part. Petr's Application to Take               
                    Deposition to Perpetuate Tesimoney is denied.                   
0024 05/10/07 OJR  ORDER that jurisdiction is                                       
                    retained by Judge Gale  Set                     B 05/10/07 C     
                    7-23-07 Boston, MA Spec. for further trial. Case remains         
                    set for trial on 5-21-07, Boston, MA.                           
0025 05/21/07 HEAR HEARING before Judge Gale at                                     
                    Boston, MA                         ORD 06/19/07                 
                    5/21/07 Petr's Mot. for Judicial Notice (C/S 5/18/07) --         
                    C.A.V. Cont'd - No Order.                                       
0026 05/21/07 MOTP MOTION by petr. for Judicial       ORD 06/19/07                 
                    Notice. w/Appen. att'd. (C/S       ORD 07/31/07                 
                    5/18/07)                                                         
0027 06/04/07 RESP RESPONSE by resp. to petr's Mot.                                 
                    for Judicial Notice. (C/S                                       
                    6/1/07)                                                         
0028 06/05/07 O    ORDER Set Time & Date Certain                                   
                    7/24/07 Boston, MA Spec. for                    B 06/07/07 C     
                    trial. Set 8/23/07 Boston, MA Spec. for further trial.           
                    Resp. by 6/4/07 submit response to petr's Mot. for Judical       
                    Notice. Parties by 6/15/07 submit Stip. ofFacts.                 
0029 06/18/07 STP  STIPULATION OF FACTS w/Exhs.                                     
                    LODGED (Per Judge)                                               
0030 06/19/07 O    ORDER parties by 7/3/07 submit a                                 
                    supplemental stip. of facts                     B 06/20/07 C     
                    Petr's Mot. for Judicial Notice is denied.                       
0031 06/21/07 TRAN TRANSCRIPT of 5/21/07 Rec'd                                     
                    (recall)                                                         
0032 07/03/07 MISC SUPPLEMENTAL STIPULATION OF                                     
                    FACTS. w/Exs. LODGED.                                           
0033 07/10/07 O    ORDER Petr. by 7-19-07 file mot.                                 
                    in limine.  Resp. by 8-3-07                     B 07/10/07 C     
                    submit response thereto.                                         
0034 07/19/07 MOTP MOTION by petr. in limine to                                     
                    exclude the expert report &        ORD 08/07/07                 
                    testimony of Park Dietz, M.D., M.P.H., Ph.D. (C/S 7-18-07)       
0035 07/24/07 PTRL PARTIAL TRIAL before Judge Gale                                 
                    at Boston, MA                                                   
                    Also called 7-25, & 7-26-07. Partial trial held.                 
0036 07/24/07 STP  STIPULATION OF FACTS w/Exhs.                                     
0037 07/24/07 SUPP SUPPLEMENTAL STIPULATION OF FACTS                               
                     w/Exhs.                                                         
0038 07/24/07 PTM  PRE-TRIAL MEMORANDUM for Resp.                                   
                    (C/S 6-29-07)                                                   
0039 07/24/07 PTM  PRE-TRIAL MEMORANDUM for Petr.                  R 08/03/07       
0040 07/31/07 O    ORDER petrs' Appl. to Take                                       
                    Deposition filed 4/6/07 is                      B 08/01/07 C       
                    denied as moot, Petrs' Mot. for Judical Notice filed             
                    5/21/07, is denied as moot.                                     
0041 08/02/07 TRAN TRANSCRIPT of 7-24-07 rec'd.                                     
                    (PTRL)                                                           
0042 08/02/07 TRAN TRANSCRIPT of 7-24-07 rec'd.                                     
                    (PTRL)                                                           
0043 08/02/07 TRAN TRANSCRIPT of 7-25-07 rec'd.                                     
                    (PTRL)                                                           
0044 08/02/07 TRAN TRANSCRIPT of 7-25-07 rec'd.                                     
                    (PTRL)                                                           
0045 08/02/07 TRAN TRANSCRIPT of 7-26-07 rec'd.                                     
                    (PTRL)                                                           
0046 08/02/07 TRAN TRANSCRIPT of 7-26-07 rec'd.                                     
                    (PTRL)                                                           
0047 08/03/07 RESP RESPONSE by resp. to mot. in                                     
                    limine re: P. Dietz. (C/S                                       
                    8/2/07)                                                         
0048 08/07/07 O    ORDER denying petr's mot. (34) in                               
                     limine.                                        B 08/08/07 C     
0049 08/23/07 FTRL FURTHER TRIAL before Judge Gale                                 
                    at  Boston, MA                     SUB 08/23/07                 
                         OPENING BRIEFS DUE - 11/6/07                               
                         ANSWERING BRIEFS DUE - 1/21/08                             
                         NO OTHER BREIFS DUE                                         
                               SUBMITTED JUDGE GALE                                 
0050 08/31/07 TRAN TRANSCRIPT of 8/23/07 rec'd.                                     
                    (FTRL.)                                                         
0051 10/09/07 MOTP MOTION by petr. to ext. time to                                 
                    11/20/07 to file opening           GR  10/16/07 B 10/17/07 C     
                    briefs. (N.Obj) (C/S 10/2/07)                                   
0052 11/21/07 BFR  BRIEF for resp. (p.m.t.)                        P 11/23/07 C     
0053 11/21/07 BFP  BRIEF for petr. (p.m.t.) (Per                   R 11/23/07       
                    Judge)                                                           
0054 12/17/07 MOTP MOTION by petr. to ext. time to                                 
                    2/11/08 to file answering          GR  12/20/07 B 12/21/07 C     
                    briefs. (C/S 12/14/07)                                           
0055 02/11/08 RBFP REPLY BRIEF for petr.                           R 02/14/08       
0056 02/12/08 RBFR REPLY BRIEF for resp. (Per Judge)               P 02/14/08 C     


[Lillith1959]

Yeah, that was all I could find too. It's like she just dropped the case. Maybe she ran out of patience, or money, or both?  Everyone was watching to see what the final decision was going to be, but it looks to me as if the judge never received his briefs and never handed down a final decision, unless I am missing something? Thanks for doing the footwork on that little matter.

[Syne]

I know a few who have deducted surgery and were not audited. Not sure what sets off the IRS but allows others to make it under the radar.

[sd]

According to some tax people I do some work for...

If you make between 60 and 120k-150K (been a while so, I'm not sure of the exact number), you are much more likely to be audited than those above or below that income, especially if you are self employed. The more deductions, the more likely. Most importantly, the types of deductions and where you place that deduction on the form makes a big difference.

You can get away with almost anything and not raise your risk for audit if you put things in the form the right way (some things can fall into more than one category). How legal it all is kind of depends on your interpretation of the law. This doesn't mean it is illegal, just that it may need to be established if you get audited. The goal is to do it without being audited.

Is this cheating? Again, it depends on how you interpret things.
A cheap tax man, will likely play it very safe. A good tax man who is also a lawyer, will likely be willing to take a bit of risk as he can afford to. If you go to a chain to have your taxes done, don't expect them to do anything that could even remotely be questioned.  Most of those people just take a short class and are just filling in Turbo Tax. They are contracted seasonal employees.

[Syne]

When I transitioned my then tax guy's reaction was to bring every receipt. Unfortunately transition ate up my extra money so I could not longer afford him so I played it safe.

[NikkiJ]

Good question. The IRS web site has a list of stuff it considers unacceptable to claim as an "unreimbursed medical expense", but SRS is not on that list. A good accountant could advise on this.

[sarahF]

Hey Syne
When you figure out the IRS codes I'm sure alot of people will listen
Sarah

[sd]

Once you figure it out, they will change it.

[Syne]

Me figure it out? No, that is what good tax software is for and that is how I get my stuff done now. Plus side, no more $250 for the financial advisor. Downside, no proxy to deal with the Feds if they come a knockin'.

[NikkiJ]

Me figure it out? No, that is what good tax software is for and that is how I get my stuff done now. Plus side, no more $250 for the financial advisor. Downside, no proxy to deal with the Feds if they come a knockin'.

I used Turbo Tax last year, and paid an additional fee for an optional service that would provide support to me in the event of the Feds questioning my return, kind of an "insurance" premium. I haven't had to use it so I can't vouch for it's effectiveness.

[pheonix]

Good question. The IRS web site has a list of stuff it considers unacceptable to claim as an "unreimbursed medical expense", but SRS is not on that list. A good accountant could advise on this.

It's a grey area and to date the resolution has depended on the judge.  The key element: is SRS considered cosmetic?

[NikkiJ]

It's a grey area and to date the resolution has depended on the judge.  The key element: is SRS considered cosmetic?

Might be worth the court costs...

[sarahF]

All of the IRS code is a grey area
Sarah