A woman who battled the IRS over a tax deduction for her sex-change operation says she she won a victory for all transgender people. Rhiannon oh-DON’-oh-vin, who was born a man, sued the IRS in 2007 after it rejected a $5,000 deduction for about $25,000 in medical expenses. The IRS says the surgery was cosmetic and not medically necessary but the the U.S. Tax Court disagrees.