(CNSNews.com) – Don’t tax the victims of the Gulf oil spill. That's the message to President Barack Obama from fair-tax activists.

The Internal Revenue Service is going to the Gulf Coast next week to
make sure the federal government gets its cut from any oil spill
compensation checks BP issues to fishermen and others who have been
idled due to the Gulf oil spill.

The IRS plans to hold forums in seven Gulf Coast cities on July 17 “to
help victims with tax troubles or questions,” according to an IRS news
release. It has also posted tax
information for oil spill victims on its Web site.

But Ken Hoagland, author of the book "The FairTax Solution" and
organizer of the Online Tax Revolt, told CNSNews.com that the IRS is
wrong to tax hard-hit Gulf Coast residents. “It is akin to kicking
someone who’s just been hit by a truck,” Hoagland said. “We are calling
on the president to direct the IRS to forego tax bills on the BP oil
relief payments.”

According to IRS guidelines issued last month, while payments for
physical injuries or property loss are generally tax-free, payments for
lost wages are fully taxable.

“The way it stands right now, the current IRS rules would require full
taxation of all payments made to victims of the oil spill,” Hoagland
told CNSNews.com. “These rules hurt people after Hurricane Katrina – it
was belatedly recognized. They were recognized as unfair after the 9/11
attack and compensation in New York was relieved of tax bills.”

IRS Commissioner Doug Shulman, meanwhile, said that the taxmen are
coming to the Gulf to “help” people.

“As residents of the region cope with the evolving situation, I want to
assure them that the IRS will be doing everything it can to provide tax
help to those who need it,” Shulman said in a news release. “We
encourage anyone who has an issue with the IRS to contact us and explain
their hardship, and we will work with them to find a solution. We’ll do
everything we can under current law to help taxpayers.”

Hoagland said one thing the IRS could do is back off.

“That seems to be the human and common sense thing to do right now, but
until the president or the Congress direct the IRS to forego those tax
payments, people who have been knocked down will be getting an unwelcome
surprise on April 15,” Hoagland said.

Changing the IRS policy would be up to the White House or a unified
Congress – and Congress apparently is far from unified on the issue. One
Louisiana congressman, Rep. Charles Melancon (D-La.), has introduced a
bill to do what Hoagland’s group wants, but the legislation is not
expected to pass.

Hoagland's group has an online petition available.
(The Online Tax Revolt was an Internet-based march on Washington held
this past spring to protest the fiscal irresponsibility of burgeoning
deficit spending. The group advocates a Fair Tax, which is a flat sales
tax on all new goods and services.)

The IRS’ “Gulf Coast Assistance Day” is slated for seven cities in four
states: Mobile, Ala.; Panama City and Pensacola, Fla.; New Orleans,
Houma and Baton Rouge, La.; and Gulfport, Miss.

BP Global has paid out almost $150 million in compensation to oil rig
workers, shrimpers, fishermen and others whose livelihood has been
destroyed by the oil spill, which is in its third month. The energy
company has agreed to create a $20 billion fund for spill victims.