Letters for Taxes

I am getting audited and was wondering if anyone has a sample letter to prove that Plastics was reconstructive and not cosmedic?

I just have a letter from my surgeon saying it's medically necessary to restore functionality. I can't imagine IRS is as anal retentive as the insurance about documentation of photos and stuff like that.

Cass

Cass,

I just re-read your post. The "Restore functionality" is the key. We got excess skin from the disease of obesity, and are restoring it to as original as it can be.

As one who has studied IRS laws and regs I gotta tell you the IRS is WORSE than insurance companies!  The IRS does not mess around.....

Make sure you review this with a qualified tax account, he/she should be able to review your case and advise you.

Good luck!!
Ruth

Ruth, I agree!!!  The IRS is MUCH worse than the insurance companies. I am currently working on my Masters in Taxation however, and will probably claim my expenses. When I was digging around a few months ago, I found several PLR's where the IRS stated that a face lift was medically necessary, and allowed the deductions.

I will do some research tonight while I am studying...

OK, hear goes...  And it is long... BUT- This is why I will be deducting my expenses.

**DISCLAIMER**This is my professional opinion, and is just that, my opinion. You should talk to your tax advisor or preparer regarding the deduct ability of your surgery.

Further, I would not discuss this with your standard "H&R Block" preparer; this needs to be discussed with a CPA, tax attorney, or someone licensed to practice before the IRS. However, the information below will give them the needed information.

Here is what I found. There is a Tax Court Decision on a case (MATTES v. COMMISSIONER, 77 TC 650, Code Sec(s) 213) that allowed the deduction for medical expenses for amounts paid for a hair transplant. This decision was based on several facts, and a Revenue Ruling (76-332, 1976-2 C.B. 81) that allowed a deduction for the expense of a face lift. The basis for the Revenue Ruling was that a " face lifting operation was deductible "since the purpose of the taxpayer's operation was to affect a structure of the human body". It is further states in the case that "Both hair transplantation and face lifting operations affect a structure of the body. Both operations require medical expertise. Both are undergone for cosmetic reasons although the procedure itself is treatment for a physical condition of the body." The case lastly mentions another revenue Ruling where the cost of a wig was allowed because it was perscribed by a doctor to maintain  positive mental health.

While Revenue Rulings only carry a little weight with the IRS, Court Cases carry A LOT of weight. Also, IRS Publications and instructions are considered a "secondary authority" , while Court cases are considered a "Primary Authority".

So, in essence, the IRS instructions make it look like the expense is not allowed. However, if your were to be audited, and your preparer/CPA/Attorney cited those rulings and case, you would have a good chance of winning.

Great info! Thanks

OMG! This would be fabulous! I think I'm going to try it, but of course with the advisement of a CPA.

Thanks

I do think we have to be careful.  The IRS will not just accept plastic surgery deductions.  If your file gets flagged I think the odds are that there will be an audit and an appeal.  If ready and willing to do battle with the IRS go for it.

I do plan on asking my tax guy about it.  FYI - My guy is a former Senior Tax Audited for the IRS.    If I can get to him in the next couples of days I'll post his response for everyone.

I'm not trying to be negative Nellie, just want folks to be cautious when "assuming" the IRS will accept the deduction.

Cheers
Ruth

I don't know anything, but I assume that if the procedure is deemed "medically necessary" like rashes, etc. that it would be covered. Hmmm...