In IR-2010-078, the Internal Revenue Service (IRS) released guidance based on current law that explains how the government can help BP oil spill-impacted taxpayers.
“This is a very difficult time for many people affected by the oil spill in the Gulf of Mexico. As residents of the region cope with the evolving situation, I want to assure them that the IRS will be doing everything it can to provide tax help to those who need it,” IRS Commissioner Doug Shulman said. “We encourage anyone who has an issue with the IRS to contact us and explain their hardship, and we will work with them to find a solution. We’ll do everything we can under current law to help taxpayers.”
In the guidance, the IRS explains that generally payments received from BP for lost income should be treated “in the same way that the wages or business income these payments are replacing would have been.” There are new sections on the IRS website including Gulf Oil Spill Information Center and Gulf Oil Spill: Question and Answers. The IRS will also hold Gulf Coast Assistance Day on July 17. IRS employees will be available to meet with taxpayers and their representatives in Mobile, Alabama, Panama City, Florida, Pensacola, Florida, New Orleans, Louisiana, Houma, Louisiana, Baton Rouge, Louisiana, and Gulfport, Mississippi.
Further information will be available in the coming days and weeks so be sure to visit Vision Payroll for updated information.