Posted: Jan 19, 2011 2:21 PM by Press Release
Updated: Jan 19, 2011 2:25 PM
The Internal Revenue Service has this advice for individuals and businesses that received payments from lost income resulting from the Gulf of Mexico oil spill. .
1. Payments received from the Gulf Coast Claim Fund (GCCF), British Petroleum (BP) and Vessels of Opportunity Program (VOP) as a result of the BP oil spill are taxable if the payments are for lost business income, lost wages or lost profits.
2. These companies will send you a 1099 or a W-2 and will also provide a copy of these forms to the IRS.
3. Some individuals who received these payments may have opted to make quarterly estimated tax payments in 2010. While Tuesday, Jan. 18 was the last day to make an estimated tax payment for 2010, if you file your 2010 federal income tax return by Jan. 31, 2011 and pay the total taxes due, you may avoid any penalties you might otherwise have faced for underpayment of taxes.
4. Whether or not you made estimated tax payments in 2010, it is important to file your 2010 federal income tax return by April 18, 2011 (this year's tax filing deadline for filing 2010 tax returns).
5. After completing your tax return, if you find that you owe money and cannot pay, the IRS will work with you.
6. Contact the IRS's special toll-free phone line for Gulf Oil Spill related tax questions at 866-562-5227. The special services phone line operates weekdays from 7 a.m. to 10 p.m. local time.
For more information, visit the Gulf Oil Spill Information Center on IRS.gov.