IRS Releases FAQs on Taxation of Provider Relief and Coronavirus Relief Funds

POSTED ON MONDAY, July 13, 2020 

The IRS has created a Frequently Asked Questions memo on the taxation of payments from provider relief and coronavirus relief funds, which generally do not give the response that many had hoped for. These FAQs raise several issues for providers and others who receive money under these programs.

“According to the IRS, a “payment from the Provider Relief Fund is includible in gross income under section 61 of the Code.”  Payments received by tax-exempt providers from the PRF generally are not taxable; however, a payment may be subject to tax if the payment reimburses the provider for expenses or lost revenue attributable to an unrelated trade or business.”

Click here to access the FAQ

 

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