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Defenders for the IRS position would say it comes back to Section 61. The waitress provided a service for me, and I paid for the product. Compensation for services is taxable. End of record.

Regarding egg donors and sperm donors there was an IRS PLR, private letter ruling, saying could be deductible for mothers and fathers as a medical expenditure of money. Since infertility is a medical condition, helping along being pregnant could be construed as medical cure.

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