News and Events => Political and Legal News => Topic started by: Shana A on November 04, 2011, 09:20:32 AM Return to Full Version
Title: IRS Formally Agrees with Historic Court Ruling for Transgender Taxpayers
Post by: Shana A on November 04, 2011, 09:20:32 AM
Post by: Shana A on November 04, 2011, 09:20:32 AM
IRS Formally Agrees with Historic Court Ruling for Transgender Taxpayers
November 03, 2011 | Allison Herwitt
http://www.hrc.org/blog/entry/irs-formally-agrees-with-historic-court-ruling-for-transgender-taxpayers (http://www.hrc.org/blog/entry/irs-formally-agrees-with-historic-court-ruling-for-transgender-taxpayers)
On Wednesday, the Internal Revenue Service announced its intent to formally agree, termed a "notice of acquiescence," with an historic 2010 decision of the U.S. Tax Court that overturned IRS policy disallowing tax deductions for medical care related to gender transition. The case, O'Donnabhain v. Commissioner, was brought by our colleagues at Gay & Lesbian Advocates & Defenders on behalf of a transgender woman who was denied the ability to utilize a federal income tax deduction for medical care costs because the IRS considered her transition-related care not to be medically necessary. In asserting its position, the IRS had cited 2005 guidance from the IRS's Chief Counsel.
The announcement notes that the IRS now agrees with the Tax Court's conclusion and that the IRS rescinds its contrary 2005 guidance. The announcement follows HRC's formal request as part of HRC's recommendations to the Obama administration, the Blueprint for Positive Change -- and actively lobbying the IRS Chief Counsel. The decision to formally agree with the O'Donnabhain decision, makes clear to transgender taxpayers that they are equally able to utilize the medical care deduction for medically necessary care, and helps to ensure that IRS field agents are aware of the law.
November 03, 2011 | Allison Herwitt
http://www.hrc.org/blog/entry/irs-formally-agrees-with-historic-court-ruling-for-transgender-taxpayers (http://www.hrc.org/blog/entry/irs-formally-agrees-with-historic-court-ruling-for-transgender-taxpayers)
On Wednesday, the Internal Revenue Service announced its intent to formally agree, termed a "notice of acquiescence," with an historic 2010 decision of the U.S. Tax Court that overturned IRS policy disallowing tax deductions for medical care related to gender transition. The case, O'Donnabhain v. Commissioner, was brought by our colleagues at Gay & Lesbian Advocates & Defenders on behalf of a transgender woman who was denied the ability to utilize a federal income tax deduction for medical care costs because the IRS considered her transition-related care not to be medically necessary. In asserting its position, the IRS had cited 2005 guidance from the IRS's Chief Counsel.
The announcement notes that the IRS now agrees with the Tax Court's conclusion and that the IRS rescinds its contrary 2005 guidance. The announcement follows HRC's formal request as part of HRC's recommendations to the Obama administration, the Blueprint for Positive Change -- and actively lobbying the IRS Chief Counsel. The decision to formally agree with the O'Donnabhain decision, makes clear to transgender taxpayers that they are equally able to utilize the medical care deduction for medically necessary care, and helps to ensure that IRS field agents are aware of the law.
Title: Re: IRS Formally Agrees with Historic Court Ruling for Transgender Taxpayers
Post by: SandraJane on November 04, 2011, 11:22:10 AM
Post by: SandraJane on November 04, 2011, 11:22:10 AM
As of this morning, November 4, 2011, there is no mention of this ruling on the IRS website. The Announcement Document, IRB 2011-47 is dated November 21, 2011.
Looks like we'll have to wait until the 21st, to see what the guidelines will be for deducting HRT and SRS/GRS/GCS.
Or will there be a new tax form, better not be Schedule C-22! :laugh:
www.hrc.org/files/images/pages/Transgender_IRSagreeswithTaxCourt_2011.pdf (http://www.hrc.org/files/images/pages/Transgender_IRSagreeswithTaxCourt_2011.pdf)
Looks like we'll have to wait until the 21st, to see what the guidelines will be for deducting HRT and SRS/GRS/GCS.
Or will there be a new tax form, better not be Schedule C-22! :laugh:
www.hrc.org/files/images/pages/Transgender_IRSagreeswithTaxCourt_2011.pdf (http://www.hrc.org/files/images/pages/Transgender_IRSagreeswithTaxCourt_2011.pdf)
Title: Re: IRS Formally Agrees with Historic Court Ruling for Transgender Taxpayers
Post by: Sailor_Saturn on November 04, 2011, 10:12:18 PM
Post by: Sailor_Saturn on November 04, 2011, 10:12:18 PM
Congratulations to my friends in the USA! This is wonderful news for you, and I'm very happy to see this development. I only hope that the write-offs aren't riddled with all sorts of criteria such that you're forced into sub-par treatment options. Then again, the cynic in me sees just that coming your way. Keep up the good fight!