Updated February 3, 2011 — Additional questions and answers and a new notice are now available below through links on this page.
Help for Taxpayers
The IRS has opened a special telephone line for taxpayers affected by the Gulf oil spill. Those with questions about the BP payments or who are experiencing filing or payment hardships because of the oil spill should contact the IRS at 866-562-5227. The special services phone line will operate weekdays from 7 a.m. to 10 p.m. local time.
Payments and Claims
The existing law dictates whether payments received from BP for losses, damage and injuries are taxable. See these technical questions and answers for more.
|
Reason for Payment |
Tax Treatment |
|---|---|
| Lost wages or income | Taxable |
| Property damage | Non-taxable (if payment does not exceed basis in property) |
| Physical injury | Non-taxable |
Other Resources
For more resources on tax issues, see the Individuals, Small Business and Self-Employed and Forms and Publications sections of this website.
Related
- Notice 1412, Gulf Oil Spill: Reporting of Income Replacement Payments for Use in Preparing 2010 Tax Returns (obsolete)
- The "What Ifs" of an Economic Downturn
- IR-2010-85, IRS Announces Opening Times, Addresses for July 17 Special Assistance Day for Gulf Oil Spill Victims
- IR-2010-84, IRS Opens Dedicated Phone Line for Gulf Oil Spill Victims
- IR-2010-78, IRS Provides Tax Help, Guidance to Gulf Oil Spill Victims; Special Assistance Day Planned for July 17
- IR-2010-29, IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others
- IRS Publication 4873, The Gulf Oil Spill and Your Taxes (obsolete)
- IRS Publication 4873-A, Gulf Oil Spill: Questions and Answers (obsolete)
- IRS Publication 547, Casualties, Disasters, and Thefts PDF
- IRS Publication 584, Casualties, Disasters, and Theft Loss Workbook PDF
- IRS Publication 4913, Navigating the IRS - Oil Spill Tax Information & Assistance (obsolete)