IRS to Determine Tax Treatment of Per Diem, Inconvenience Payments

UIL: 61.00-00
Release Date: 6/30/2017

Date: June 15, 2017

Refer Reply To: CC:ITA:4 - CONEX-116299-17

The Honorable Nanette Diaz Barragán
Member, U.S. House of Representatives
302 West 5^th Street, Suite 201
San Pedro, CA 90731

Dear Representative Barragán:

I apologize for the delay in responding to your letter dated April 25, 2017, on behalf of your constituent, * * *. * * * asked whether he must pay federal income tax on per diem and inconvenience payments he received from * * * related to the remediation of toxic contamination of his home in the * * * of * * *.

We’re reviewing the facts and circumstances of the per diem and inconvenience payments * * * made to residents of the * * * to determine their appropriate tax treatment. Once we have a resolution, we will make our views known to residents of the * * *.

Thank you for your interest in this issue. If you have questions, please contact me or * * * at * * * .

Sincerely,

Michael J. Montemurro
Branch Chief
Office of Associate Chief Counsel
(Income Tax and Accounting)