The Internal Revenue Service has allowed a transgender woman to deduct the cost of her SRS as a medically necessary treatment. Rhiannon O'Donnabhain appealed after her deduction for her medical treatments was denied by the initial tax examiner, who viewed it as cosmetic. The appeals officer later determined the expenses were for "an integral part of a professionally prescribed course of treatment for her diagnosed condition."
"I am greatly relieved by the Appeals Officer's decision. While the money was important to me, so too was the underlying principle. I hope this case sends a clear message that transgender people deserve dignity, respect and equal treatment for our medical care" said O'Donnabhain.

Ms O'Donnabhain was defended by Karen Loewy from Gay & Lesbian Advocates & Defenders (GLAD) who said, "This important decision recognizes that sex reassignment can be as medically necessary for some people as an appendectomy or heart bypass surgery, any notion that medical treatment for a transgender person is purely cosmetic is based on misunderstanding and prejudice, not medical science".