Tax Issues Raised by BP Oil Spill Payments

Written by George T. Williamson | gwilliamson@farr.com

 

George Williamson Attorney | Farr Law | Southwest Florida

Attorney George Williamson.

Businesses and individuals who received payments from the Gulf Coast Claim Fund (GCCF) should consult their tax professionals to discuss the implications of their payment. “Payments received from the from the GCCF as a result of the Gulf oil spill are taxable if the payments are for lost business income, lost wages or lost profits. . . . 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. . . . [The GCCF] will send you a 1099 or a W-2 and will also provide a copy of these forms to the IRS.” For further discussion, see: IRS Can Help Individuals Facing Tax Issues From Gulf Oil Spill

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