Questions and answers about the reporting requirement under section 6050X

These frequently asked questions (FAQs) answer questions about the information reporting required under section 6050X. Section 6050X requires a government or governmental entity, including a nongovernmental entity treated as a governmental entity, to file an information return with the IRS with respect to amounts a payor is required to pay, pursuant to certain suits or agreements, with respect to the violation of the law or the investigation or inquiry into the potential violation of the law. Section 6050X also requires the government or governmental entity to furnish a written statement, which provides the same information that was provided to the IRS, to the payor.
Frequently Asked Questions
Governments

IRS updates frequently asked questions for states and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds

FS-2022-36, September 2022 — This Fact Sheet updates frequently asked questions (FAQs) related to the Coronavirus State and Local Fiscal Recovery Funds established under the American Rescue Plan Act (SLFR Funds) (FS-2021-16). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs.
Frequently Asked Questions
Governments, State Governments, Local Governments