There has been a lot of buzz this week about the IRS pursuing an egg donor for not reporting as income $20,000 in compensation she received from two egg donation cycles. I suspect Judge Holmes will rule later this year that at least a significant portion of the egg donor’s compensation is taxable income.
The unintended consequence of this anticipated ruling will likely lead to an increase in the “fees” being charged by egg donors so as to offset their tax liability. Most donors have a figure in mind that they want to net for their cycle. So you can expect the average donor compensation to increase by anywhere from 15-35% — creating further financial headaches for already cash-strapped infertility patients.