Posted: November 24, 2022
Washington – Today, Rep. Mike Thompson (CA-05) released additional information on the PG&E Fire Victims Trust and provided an update on his legislation, H.R. 7305.
“The Fire Victims Trust was set up to help people recover from the impact of wildfires and rebuild what they lost, and no fire survivor should have to pay taxes on their settlement funds,” said Thompson. “While I continue to press for the passage of my bill, I am glad to provide additional information to those looking for clarification on what this means for their payments.”
Rep. Thompson has been working with the Internal Revenue Service (IRS), outlining several potential tax issues facing settlement recipients and requesting formal guidance from the agency.
In response, the IRS clarified that a number of existing tax provisions may assist taxpayers in deferring or fully offsetting any tax liability arising from FVT payments. These provisions are especially relevant to survivors who have rebuilt or are in the process of rebuilding their homes.
The additional information can be found here.