By Robin von Halle
Are your organs, your blood, even your eggs property? If so, should you be taxed on the proceeds when you give that blood or those eggs? Two law school professors say yes.
“It’s a slam dunk. There’s no doubt this is taxable,” Bridget Crawford of the Pace University of Law told Wall Street Journal columnist Arden Dale, who wrote that “the Internal Revenue Service would likely win should it decide to pursue those who don’t pay taxes on the sales of their own body materials,”
Dale also interviews Lisa Milot of the University of Georgia Law School, who wrote in a recent paper that “[the] debate is whether the human body is exclusively a laborer, or if it can also be a factory or a collection of spare parts.”
An imminent change in the law? Probably not. But it’s something to think about. After all, if the biomedical and fertility industries grow too temptingly large for the IRS to ignore, these arguments might turn from theory into law.
If that happens, you can expect the long waiting lines for surrogates and donated eggs to grow even longer as the incentives shrink and fewer women are willing to participate. America is one of a few industrialized nations with liberal fertility laws. Imposing additional taxes could undermine that status to the detriment of everyone involved.
Our donors and surrogates are compensated for their time and medical expenses, not the “product” they’re providing. They are taxed on their income. We don’t believe an additional tax is necessary or fair. For the reality is that one woman’s hope is not another’s property.

2 comments
Comments feed for this article
November 26, 2009 at 12:32 am
Marna Gatlin
Egg donors should be taxed on compensation they earn. But they should not have to pay an extra tax or excise tax on a product their body makes. Ridiculous. That’s like charging a woman for taking the fat out of her tush and paying again to inject it elsewhere in her body.
February 12, 2010 at 2:53 pm
Karen
I find it interesting that, according to this, the IRS is considering taxing donors, when I can assure you they already are. They are a federal agency, not a state agency, so there is no excuse for the inconsistencies from state to state, other than to say that they simply are not well enough informed or organized to have a firm policy in place.
I’m a “retired” egg donor in New York State, and I was taxed by the IRS a whopping 40% on my compensations. Yes, 40%!! This does not include what the state then taxed me either.
Luckily, I reached out to a very compassionate attorney in California who was well versed in fertility laws, and she went to bat on my behalf against the IRS and brought the numbers down to 19%. Do I feel that was reasonable? Well it was certainly much more reasonable than 40%, however, no, I did not feel it was right. By taxing compensation, the government is equating egg donation to the selling of body parts, which is illegal. So when they tax donors, they are basically saying it’s ok to sell your body parts, as long as they get their cut.
I really felt very jaded by the whole thing. I had been doing something very good for quite a few families, all the while experiencing the side effects that come along with the daily hormone injections, the interruptions in my daily routine by going for ultrasounds and blood work every morning with a toddler in tow, the complications I endured after retrievals, and the IRS swooped down and felt “entitled” to earn more than I had. Monetarily speaking of course. I gained much more than monetary compensation from this process, something that the IRS can never take away from me. But it was quite souring that they felt the need to be involved in something so widespread that carries so much ignorance and controversy. What many people don’t realize is that so many donors do not do this for the monetary compensation. In fact, when I first decided to become a donor, I was not aware that there was compensation for such a thing. But that doesn’t mean I feel the compensation is free for the taking. Especially when the government provided so little as assistance to those in need at that time (i.e. government funding for infertility research, stem cell research, use of unused embryos, etc.).
At one point during my fight against the IRS, I notified them of all that I’d gone through, provided documentation of data and information from SARM, American Cancer Society, etc. and my own medical information from my cycles, and told them that if they would allow me to inject them daily, pump them full of hormones, be poked and prodded daily, take on the risks and side effects and complications from this process, then I’d be more than happy to share my compensation with them. Through this fight, I had many conversations with an IRS tax attorney. While he could understand my argument that taxing me was almost like saying that I was selling body parts, which is of course illegal, he informed me that even illegally obtained income is taxable, and that drug dealers and prostitutes are required to pay taxes on what they earn! Great, so now the IRS classifies egg donors in the same category as prostitutes and drug dealers!!
There is such a stigma attached to this topic in society, and the problem, I feel, stems right from our government.
I feel no regrets about what I’ve done. My life has been changed by being involved in the world of infertility and modern technology for those years, and if I had the chance to do it all over again, I absolutely would. But my memories are sometimes tainted by the ugliness that was the IRS battle.