On April 9, 2021, the Internal Revenue Service (IRS) released PLR 202114001 (PLR), which provides guidance on the deductibility of medical costs under Section 213 of the Internal Revenue Code relating to fertility expenses for same-sex couples. The PLR disallows most of the costs incurred by a same-sex couple wishing to have a child.

However, according to McDermott partner John T. Lutz, the IRS’ distinction between deductible costs for medical procedures attributable to the taxpayer and non-deductible costs for medical procedures attributable to third parties raises unique concerns about the equitable treatment of different taxpayers.

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