3APR2004. I'm a starving writer who does clinical trials (drug
studies) in the U.S. to survive. I made $7800 in 2003. The company
sent me a 1099-Misc (IRS tax form) with $7800 in box 7; only box 7 was
filled in. But...

A fellow subject insisted he found an official website stating that
clinical-trial subjects do not have to pay IRS taxes on clinical-trial
earnings (the $7800 in my case). He said an IRS auditor backed down
when a subject showed this auditor the website. I think this exemption is
based on the idea that clinical-trial subjects are generally poor
people who provide a critically important service.

I cannot find that fellow subject and I cannot find that website. So I
ask you to find at least one IRS-acceptable website that shows
clinical-trial subjects do not have to pay IRS taxes on clinical-trial
earnings.

Possible search terms: "clinical trials," "clinical trial," "drug
trials," "drug trial," "drug studies," subjects, subject, volunteers,
volunteer, pharmaceutical, "IRS taxes," "tax exempt," "1099-misc,"
"box 7," "nonemployee compensation," FDA, U.S., 2003.

I need an answer before April 12. But the sooner the better.

Thank you

Sorry, but here's a typical policy page from the
Loma Linda Veterans Association for Research and Education:

"Study participation payments of $600 or more in a given
 calendar year are taxable income, and LLVARE is required
 to send an IRS 1099-Misc form for each such recipient".
http://www.llvare.org/forms/policies/pi_handbook_2002.pdf