News - Local
BP Payments For Lost Wages Are Taxable
Posted: Jun 25, 2010 12:09 PM by Melissa Canone
WASHINGTON (AP) - The Internal Revenue Service wants its cut
from oil spill victims who receive BP payments for lost wages.
The agency says that under current law, BP payments for lost
wages are taxable - just like the lost wages would have been. The
IRS says payments for physical injuries or property loss are
generally tax free.
BP officials have agreed to create a $20 billion fund for spill
victims, as well as a $100 million fund to support displaced oil
rig workers.
The IRS is planning to hold forums in seven cities in the Gulf
region on July 17 to help oil spill victims with tax troubles or
questions.
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