IRS Provides Tax Help and Guidance to Gulf Coast Victims

by Joshua on June 25, 2010

In IR 2010-78, the IRS issued guidance to individuals and businesses effected by the oil spill in the Gulf of Mexico. In addition to a number of new efforts to assist taxpayers, the service announced that on July 17th there will be a special Gulf Coast Assistance Day:

The guidance released today is based on current law, and it explains how recipients of payments from BP should treat the payments for tax purposes. According to the current law, BP payments for lost income are taxable in the same way that the wages or business income these payments are replacing would have been. The law treats compensation for lost wages or income differently for tax purposes than compensation for physical injuries or property loss, which generally are nontaxable.

Here are links to additional IRS Gulf Oil Spill Resources:

Gulf Oil Spill Information Center

Gulf Oil Spill: Questions and Answers

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