Posted: Jul 17, 2010 7:18 PM by Rob Krieger
Updated: Jul 18, 2010 9:50 AM
The IRS is hoping to provide relief to oil spill workers and folks affected by the spill on the gulf coast. A special assistance day was held to inform residents of how certain payments from BP could affect their tax situation.
"Payments from BP may or may not be taxable it depends on what kind of payment it is," said David Stell, an IRS spokesperson, "If its a payment in the form of money lost from wages, something like that, then generally speaking its going to be a taxable event."
But Stell says not every instance could be taxable and the best thing to do is check with the IRS or your personal tax preparer.
"Have somebody explain it to you. Don't wait until next tax season before you figure out what you need to do with that," said Stell.