ABC Taxes, Tips & Tools

There is no such thing as a free lunch.  If you are a busi­ness affected by the BP oil spill and receive money to replace income or prof­its, that is tax­able income folks.  It’s replac­ing money that would have been taxed so…

If you are a self-employed pro­pri­etor, then you also owe self-employment tax on the money received. 

Pay­ments to cover lost wages are also tax­able and if your employer or employer’s agent is mak­ing the pay­ment then fed­eral income tax with­hold­ing should occur. 

If you do not sup­ply your TIN to the payee then your pay­ments will be sub­ject to 28% back up withholding. 

If you have ques­tions about your BP oil spill replace­ment income, and BP oil spill related tax matters, there is a toll free num­ber you can call, 1 866 562‑5227.  Also BP oil spill vic­tims in finan­cial trou­ble can call the IRS to sus­pend col­lec­tion efforts.

As always, small busi­ness ser­vices and tax­a­tion are our busi­ness.  If you need help Please give Art & Busi­ness Con­sult­ing a call.  We would love to engage you as a client.

The usual dis­claimers: Although ABC has made every effort to insure the accu­racy of Taxes, Tips and Tools, mis­in­for­ma­tion, dis­in­for­ma­tion, changes, mis­takes, typos and hack­ers hap­pen, there­fore Art & Busi­ness Con­sult­ing LLC takes no respon­si­bil­ity for any action taken or results based on the infor­ma­tion sup­plied here in. The con­tent of this blog gen­er­ally applies to busi­ness and indi­vid­ual tax­a­tion in the United States of Amer­ica.  Inter­nal Rev­enue Ser­vice Cir­cu­lar 230 Dis­clo­sure:  As pro­vided for in Trea­sury reg­u­la­tions, advice (if any) relat­ing to fed­eral taxes that is con­tained in this com­mu­ni­ca­tion (includ­ing attach­ments) is not intended or writ­ten to be used, and can­not be used for the pur­pose of (1) avoid­ing penal­ties under the Inter­nal Rev­enue Code or (2) pro­mot­ing, mar­ket­ing or rec­om­mend­ing to another party any plan or arrange­ment address herein.  Art & Busi­ness Con­sult­ing LLC cur­rently does not have a cer­ti­fied pub­lic accoun­tant, human resource spe­cial­ist, finan­cial plan advi­sor or an attor­ney on staff; this infor­ma­tion is purely for edu­ca­tional pur­poses and not to be con­strued as legal or finan­cial advice. Art & Busi­ness Con­sult­ing LLC and its employ­ees, mem­bers and asso­ciates are not engage to prac­tice law; you always should dis­cuss legal mat­ters with your attor­ney before talk­ing to any­one else.