IRS Wants Its Cut From Victims Of The BP Oil Spill

[Obama 2012 1,714]

Where's my cut???

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http://cbs11tv.com/national/IRS.BP.payments.2.1772670.html

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.

[Usui Takumi 1,562]

I don't see the issue. Your a fisherman who makes 49,000 a year. You can't fish. BP pays you what I can only assume will be 49,000 for the year. Why should that money be tax free?

Now if the fisherman only gets 30,000 then I have an issue......with BP.

[Susita 175]

Current tax law considers lost wages payments taxable, it doesn't matter if BP is paying them or any other firm unfortunately.

"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."

http://www.irs.gov/newsroom/article/0,,id=224757,00.html?portlet=7

I don't see the issue. Your a fisherman who makes 49,000 a year. You can't fish. BP pays you what I can only assume will be 49,000 for the year. Why should that money be tax free?

Now if the fisherman only gets 30,000 then I have an issue......with BP.

I agree.

BTW I love the provocative headlines "IRS wants a cut" as if the IRS is making a profit or something.

[mawilson 2,133]

BTW I love the provocative headlines "IRS wants a cut" as if the IRS is making a profit or something.

"Obama wants a cut" would have been more accurate.

[Susita 175]

"Obama wants a cut" would have been more accurate.

I think you're right, although I think the whole damn gov't wants a cut.

[thongd4me 69]

Just think of the IRS as an unlimited partnership...your partner for life.

[I AM NOT THAT GUY 5,715]

Don't forget: Bribes are also taxable!

[sjr09 155]

Just think of the IRS as an unlimited partnership...your partner for life.

[Scott & Lai 12]

:rofl:

[sjr09 155]

Yeah it’s funny, but so true!

[ready4ONE 5,400]

Since the payments made by BP are indeed income, where's the beef? Oh ya, forgot, we didn't have an IRS until we elected Obama...

[Trumplestiltskin 5,791]

I don't see the issue. Your a fisherman who makes 49,000 a year. You can't fish. BP pays you what I can only assume will be 49,000 for the year. Why should that money be tax free?

Now if the fisherman only gets 30,000 then I have an issue......with BP.

Indeed - a non-story.