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Sex Therapy Expenses Don’t Fly In Tax Court

Kelly Phillips ErbSeptember 15, 2009May 18, 2020

William Halby, a 78-year-old tax lawyer, claimed more than one hundred thousand dollars spent on prostitutes and magazines as medical expenses for sex therapy. You won’t be surprised to learn that the Internal Revenue Service (IRS) didn’t agree with him and issued a Notice of Deficiency. The matter landed in court. You can read more about the case over at Accounting Today.

And it’s not Halby’s first attempt to claim those deductions. Halby also lost a New York state tax case in which he had tried to deduct $322,000 in sex-related charges for 2001-2005.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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sex therapy, William Halby

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3 thoughts on “Sex Therapy Expenses Don’t Fly In Tax Court”

  1. ThomasT says:
    September 15, 2009 at 11:03 am

    I don’t understand your emphasis on his age. Are older people supposed to be more scrupulous than to hire prostitutes? More ethical than to commit tax fraud?

    Reply
  2. IDon'tWannaGetOld says:
    September 15, 2009 at 1:23 pm

    No Thomas, they are supposed to be much less interested/needful of sex! (Except Hef.) I’m 45 and I’m not looking forward to that!

    Reply
  3. Eric says:
    September 17, 2009 at 11:25 am

    I would think it didn’t fly, because these were not sex therapy expenses. It was a man visiting a prostitute and nothing more. I wonder how it would’ve turned out if the man had a “perscription” from a genuine doctor and had done business with a practicing ,licenced, legitimate, sex therapist.

    Reply

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