Reporting disaster relief payments

March 3, 2021

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Q. I work for a local government. We distributed federal funds to small business to aide the costs of COVID compliance and loss of income due to public health closures. At the start of the program, we had incorrectly applied IRC §139 – Disaster Relief Payments, and thought that the payments were not reportable. Towards the end of 2020 we had received new information that IRC §139 did not apply since the payments were intended for "business use." Our legal team confirmed that the payments made…

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