Paul L. Caron

Saturday, February 22, 2014

More on the Tax Treatment of Egg Donation

EggFollowing up on Monday's post, Tax Court Seeks Amicus Briefs on Tax Treatment of Egg Donation: Bloomberg, Egg Donor IRS Challenge Offers Future Sperm Tax Certainty, by Richard Rubin:

To Nichelle Perez, the $20,000 she received for donating her eggs for fertility treatments was a tax-exempt payment for pain and suffering.

Not so, said the IRS, which considers it income.

The California woman and the government are arguing over whether egg donation is an act of commerce that should be taxed. A U.S. Tax Court judge will determine the outcome in what is seen as a precedent-setting case that could provide certainty for people who donate eggs, sperm and blood plasma.

“Settling this would settle the law for an awful lot of people,” said Lisa Milot, an associate law professor at the University of Georgia who studies the regulation of the human body. “Right now, the status is that people’s understandings and practices are just all over the place.”

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