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News EssentialsThe Newsroom TopicsIRS Resources | Issue Number: IR-2021-231Inside This IssueIRS provides answers to states and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds WASHINGTON – The Internal Revenue Service today provided answers regarding Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs. The answers are in FAQs (FS-2021-16) and detail the tax consequences for individual recipients and the reporting requirements for the states and local governments and employers, as applicable. Some SLFR Fund recipients may have to report certain payments as income and may owe tax depending on the purpose of the payment. Today's FAQs also provide answers regarding payments used to assist with childcare or other basic needs. States and local government administrators will find answers regarding their filing requirements, including when Forms 1099 need to be filed. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. -30- IRS-FAQ Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |
Wednesday, November 17, 2021
IR-2021-231: IRS provides answers to states and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds
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