IRS plays politics with tax code

San Francisco Chronicle – Donald H. Read

Those who suspect that bias might have deprived “Brokeback Mountain” of the best picture Oscar and hobbled “Transamerica’s” consideration might feel the same about the IRS’ recent treatment of domestic partners and transgender people. So should everybody.

The two IRS rulings may not seem troublesome at first. The IRS ruled that, when filing individual returns, each registered domestic partner in California must report his or her own individual salary, rather than half of both partners’ combined income (sometimes called income splitting). It also ruled that costs of gender reassignment surgery are not deductible medical expenses. What’s the big deal?