IRS confirms that BP claims money is taxable

The Internal Revenue Service has confirmed that anyone who received money from BP through the Gulf Coast Claims Facility as a result of Gulf of Mexico oil spill will have to pay taxes on that income on their 2010 tax forms.

A spokeswoman for the New Orleans IRS office said Gulf Coast residents that received funds from BP should double check their returns with their tax agents.

Funds received in 2010 will have to be paid on taxes due April 18. This year, April 15 lands on Emancipation Day and thus the federal government is giving tax payers an extra three days to file.

Funds received in 2011 will need to be paid on 2011 taxes due in April 2012.