Sen. Marsha Blackburn calls on IRS to investigate Planned Parenthood's tax-exempt status

Senator Marsha Blackburn is calling on the Internal Revenue Service (IRS) to investigate Planned Parenthood's tax-exempt status, after learning it is now providing cosmetic procedures in some locations.

Key Takeaways:

• Planned Parenthood Mar Monte, the abortion organization's largest affiliate, has begun selling Botox and providing other beauty and aesthetic treatments.

• In a letter to the IRS, Blackburn said the organization needs to investigate whether selling cosmetic treatments violates Planned Parenthood's tax-exempt status.

• Blackburn said this marks a shift from Planned Parenthood's claim to be a charitable health care organization.

The Details:

In a press release, Blackburn announced that she sent a letter to Robert Malone, Director of Exempt Organizations and Government Entities at the IRS, questioning if Planned Parenthood has violated its tax-exempt status by selling cosmetic treatments.

Planned Parenthood is a tax-exempt 501(c)(3) charitable organization, but the New York Times recently revealed that Planned Parenthood Mar Monte, the organization's largest affiliate, had begun providing Botox and other cosmetic treatments in an effort to make up lost revenue.

Dr. Laura Dalton, the chief medical operating officer for Planned Parenthood Mar Monte, told the New York Times that the affiliate was providing "cosmetic Botox injections and intravenous drips for hydration to help keep the lights on."

Dalton tried to justify the move by saying clients were increasingly seeing cosmetic treatments as part of their overall well-being.

“So I think, actually, aesthetics is an alignment with what Planned Parenthood stands for," she said. "Planned Parenthood stands for bodily autonomy. Planned Parenthood stands for: You decide what is best for you, and what you need to feel good, and to feel like your body is what you want it to be.”

Blackburn clearly disagrees; in her letter, she wrote:

Let’s be clear what is actually occurring here.

Planned Parenthood, in an effort to abuse its 501(c)(3) status, is appealing to the women’s beauty market after the Working Families Tax Cut Act (Public Law 119-21) imposed a restriction on federal Medicaid funding for tax-exempt community abortion providers.

In a clear statement of admission, Planned Parenthood Mar Monte President and Chief Executive Officer Stacy Cross, stated the affiliate broadened its services to ‘keep its doors open’ and fill in the estimated $100 million revenue gap for the one affiliate alone…” These offerings go well beyond facial injections. Now, individuals can purchase IV hydration treatments for $100 to $150, and the affiliate plans to add dermal fillers, laser hair removal, and other cosmetic services akin to a med-spa.

As the article notes, ‘[n]ow, along with access to birth control, abortions and testing for sexually transmitted infections, patients can order an IV hydration after a night of drinking—or smooth crow’s feet.’

An expansion ‘beyond a clinic’s core offerings,’ requires the stamp of approval from the National Office, meaning this is not the result of a single rogue affiliate, but a top-down expansion and messaging effort. These developments not only raise concerns about Planned Parenthood growing beyond its original mission statement, but also about the use of its federally supported resources in that expansion.

Federal cost-allocation rules require recipients of federal funding to properly separate costs associated with federally supported activities, and federal funds generally may not subsidize unrelated commercial services.

Zoom Out:

While Planned Parenthood has claimed it needs to sell these services just to survive, its most recent annual report tells a different story. Angela Vasquez-Giroux, vice president of communications at the Planned Parenthood Federation of America, claimed a "hostile political environment" is decreasing its revenue, yet the annual report revealed that taxpayer funding hit a record high of $832M for 2024-25 — a $39.8M increase from the year prior. This equates to nearly $2.3M each day from American taxpayers.

Planned Parenthood also reported receiving $782.2 million in private revenue, which is more than a 14% increase from 2023-2024. Overall, Planned Parenthood’s net assets and total liabilities are currently $3.11B.

It is also true that Planned Parenthood has been closing numerous facilities in recent years. Yet this is not due to political hostility or a lack of funding; it is part of a restructuring plan put in place years ago to move away from brick-and-mortar facilities, and towards a profitable telehealth system.

Additionally, Planned Parenthood reported a record-breaking 434,450 abortions in 2024-25, up 8% from the previous year. That's 1,190 preborn lives ended every single day, which equates to nearly 50 per hour, and one every 73 seconds.

The Bottom Line:

It remains to be seen whether the IRS will respond to Blackburn's request, as it seems no matter what rules Planned Parenthood breaks, it always manages to hold on to taxpayer money.