IRS may tax gulf coast damage claims after oil spill finished

BY Aliyah Shahid
DAILY NEWS STAFF WRITER

Tuesday, June 22nd 2010, 11:14 AM

Gulf oil spill victims said they were shocked that they may have to pay taxes on federal compensation.
Huffaker/Getty
Gulf oil spill victims said they were shocked that they may have to pay taxes on federal compensation.

The Internal Revenue Service may take a bite out of that $20 billion Gulf spill fund.

And locals are fuming.

Many residents were already surprised that BP took so long to dish out payments. So when they got their compensation -- a few thousand dollars each -- they spent it quickly.

“"If they're going to pay you a lump sum, like for a year, then bam, take the taxes out of the check," said Todd Pellegal, an unemployed Gulf Coast shrimper from Boothville, La. "But a little bit at a time, they shouldn't."

Pellegal said he immediately spent his $2,500 check buying groceries for his family and paying off bills.

President Barack Obama created a $20 billion disaster relief fund last week to compensate victims who have lost their livelihood after placing a six-month ban on deepwater drilling in the region

 The April 20 oil rig explosion of Deepwater Horizon killed 11 workers and resulted in the worst oil spill in U.S. history. 

The IRS would not comment on whether an exception would be made. And Kenneth Feinberg, who is overseeing the handouts, said he hasn’t determined if the funds would be taxed.

But tax experts said all income can be taxed under federal law unless specific exceptions are made by the Treasury Department or Congress.

"With the experience we've had with tornadoes and hurricanes, they know they need to address this," said John Ams, executive vice president of the Alexandria, Va.-based National Society of Accountants.

Cherie Edwards, who books charter fishing trips in Orange Beach, Ala., is not thrilled that she may have to pay additional taxes. She’s already losing $270 a week.

"I haven't even thought about taxes. Wow. That makes me mad," said Edwards, who has one child in high school and another in college. "I'm already losing money, and now I've got to figure out how to hold back money to pay taxes?"



Read more: http://www.nydailynews.com/news/national/2010/06/22/2010-06-22_inte...

Views: 16

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

tjdavis posted a photo
2 hours ago
Burbia posted a status
"Who knew releasing the MLK files and literally deflecting, it ends up implicating himself with the Epstein Files."
yesterday
Burbia posted a video

Dan Bilzerian DEMOLISHES MAGA Nutjob Patrick Bet-David on His Own Show

Watch as two powerhouse personalities collide in this no-holds-barred debate on one of the world’s most contentious issues. Patrick Bet-David, known for his ...
yesterday
Doc Vega's 7 blog posts were featured
Sunday
tjdavis's 2 blog posts were featured
Sunday
Less Prone favorited tjdavis's blog post Track AIPAC
Sunday
FREEDOMROX's blog post was featured

MRNA VACCINES: Question

Hello my fellow sojourners,I know it has been five years since the Plandemic, but one question has…See More
Sunday
Less Prone favorited FREEDOMROX's blog post MRNA VACCINES: Question
Sunday
cheeki kea commented on cheeki kea's photo
Saturday
cheeki kea posted a photo
Saturday
Doc Vega posted blog posts
Friday
Doc Vega commented on Doc Vega's blog post Marjory Taylor Green Proposes Bill Abolishing Geoengineering or Weather Modification
"cheeki kea Marjory is in a daily battle with Democrats on the hill constantly coming up with more…"
Friday
Doc Vega posted blog posts
Jul 16
Mr. Sizzle favorited Less Prone's video
Jul 15
tjdavis posted a photo
Jul 15
Doc Vega posted a blog post

The Saga of Joe Adams May Have Solved What's Behind the Numerous Disappearances Going on in our National Forests

     The year is 2023 in September. A nature’s photographer and experienced survivalist, Joe Adams…See More
Jul 14
Sandy posted a video

Aron Siri's opening statement, Senate Hearing on Covid Vaccines, May 25

Opening statement Aaron Siri, Managing Partner, Siri & Glimstad, L.L.P.Senate Homeland Security and Governmental Affairs, Permanent Subcommittee on Investiga...
Jul 14
cheeki kea replied to cheeki kea's discussion Tartaria
"A smidgeon of facts have come to light. In English a misspelling suddenly occurred where an extra R…"
Jul 14
Doc Vega posted a blog post

The Cancel Culture Vulture

  Better to shut them down than hear their point of viewCancel culture coming after youHelping to…See More
Jul 12
Doc Vega posted a photo
Jul 11

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted