For taxpayers – both individuals and businesses impacted by the Gulf Oil Spill, there are many areas of special tax assistance that may be available, including:
· Postponement of collection and examination actions
· Additional flexibility with installment agreements
· Accelerated levy releases
· Assistance from the Taxpayer Advocate Service
· And more…
In addition, the IRS has set-up a special telephone line for taxpayers affected by the Gulf Oil Spill at 866-562-5227.
For taxpayers that receive BP payments for lost wages or business income, they are considered taxable income just like the income that it replaces – whether it is business income or lost wages.
Financial circumstances can be unique for each individual and it is advised that taxpayers review their tax situation or talk with their tax preparer about the implications of payments from the oil spill or tax-related hardships.
For more information and resources on taxpayer relief from the Gulf Oil Spill, please see:
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.