Sex Subsidy Disallowed

The New York State Division of Tax Appeals has upheld a New York State income tax audit of the tax returns of one William G. Halby. Seems as though Mr. Halby wanted the already overtaxed New York State taxpayers to subsidize his sexual activities.

The Tax Appeals Determination in Matter of William G. Halby, DTA Nos. 821494 & 821810 (18 September 2008) is a good read. One sample paragraph is set forth below

"For the 2002 tax year, petitioner claimed a medical expense deduction of $105,271.00, after the 7.5% limitation on federal adjusted gross income (AGI). Included among the medical expenses claimed was an expense of $111,364.00, of which $40,588.00 was categorized on an attachment to Schedule A on petitioner's federal return as 'therapeutic sex' and $70,776.00 as 'massage therapy to relieve osteoarthritis and enhance erectile function through frequent orgasms.' Also included as part of the medical expense deduction claimed were the sums of $658.00 for medical books, videos and periodicals and $2,173.00 for 'pornography to enhance sexual performance in lieu of taking Viagra.'"

Read the whole thing here.


My question: It specifically indicated on the taxpayer's FEDERAL tax return that he was claiming these relatively large dollar value deductions. The New York people threw a flag on the play. How did this ever get by my ex-colleagues at the IRS?