{"id":11327,"date":"2024-06-06T00:51:40","date_gmt":"2024-06-06T00:51:40","guid":{"rendered":"https:\/\/topat10.com\/?p=11327"},"modified":"2024-06-06T00:51:40","modified_gmt":"2024-06-06T00:51:40","slug":"irs-says-it-will-refund-taxes-extracted-from-ohioans-who-got-financial-assistance-after-norfolk-southern-derailment-disaster","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=11327","title":{"rendered":"IRS says it will refund taxes extracted from Ohioans who got financial assistance after Norfolk Southern derailment disaster"},"content":{"rendered":"\n
\n

Most people who received money from Norfolk Southern<\/a> in the wake of last year\u2019s\u00a0fiery train derailment<\/a>\u00a0in eastern Ohio won\u2019t have to pay taxes on millions of dollars in aid payments after all.<\/p>\n

\n

The Internal Revenue Service\u00a0said Wednesday<\/a>\u00a0that most of the payments people who live near East Palestine, Ohio, received to help them pay for temporary housing or replace their belongings aren\u2019t taxable because the Feb. 3, 2023, derailment that forced thousands of people to\u00a0evacuate their homes<\/a>\u00a0qualified as \u201can event of a catastrophic nature.\u201d<\/p>\n

The railroad estimates that it has paid more than $21 million to residents after the derailment as part of more than $107 million in assistance it has offered to the communities affected by the catastrophic train crash.<\/p>\n

The fact that residents were told they had to pay taxes on the money from the railroad was a sore spot for the people who are still struggling to\u00a0recover from the derailment<\/a>.<\/p>\n

\u201cI don\u2019t know why they didn\u2019t do that from the very beginning,\u201d East Palestine resident Misti Allison said. \u201cThe IRS ruling is a positive step in the right direction, but it\u2019s menial in the big picture. I do hope that President Biden holds true to his promise that what Norfolk Southern \u2018cannot make whole\u2019 that \u2018the government will make whole.’\u201d<\/p>\n

Residents are weighing whether to accept a share of a\u00a0$600 million class action settlement<\/a>\u00a0Norfolk Southern agreed to or opt out of that deal so they can file their own individual lawsuits. Later this month, they\u2019ll be able to hear the result of the\u00a0National Transportation Safety Board\u2019s investigation<\/a>\u00a0into the derailment at a hearing in East Palestine. Previously, the safety board said the crash was\u00a0likely caused<\/a>\u00a0by an overheating bearing on one of the railcars that wasn\u2019t caught soon enough by trackside sensors to prevent the derailment.<\/p>\n

U.S. Sen. Sherrod Brown of Ohio said it shouldn\u2019t have taken the IRS this long to realize the derailment was a disaster.<\/p>\n

\u201cThis is a long overdue step \u2014 the people of East Palestine should never have had to pay taxes on assistance they needed in the wake of the train derailment,\u201d Brown said.<\/p>\n

Norfolk Southern also praised the IRS decision.<\/p>\n

\u201cWe\u2019re proud of the investments we\u2019ve made in East Palestine and commend the IRS for taking action to relieve residents of an additional federal tax burden,\u201d the railroad said in a statement.<\/p>\n

The IRS said some payments would be taxable if they were for lost income or payments to businesses or payments the railroad made to get access to land during the ongoing cleanup.<\/p>\n

Residents who filed their taxes already before the normal April 15 deadline will have to amend their returns and request a refund for the taxes they paid on payments from the railroad.<\/p>\n<\/div>\n

Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Most people who received money from Norfolk Southern in the wake of last year\u2019s\u00a0fiery train derailment\u00a0in eastern Ohio won\u2019t have to pay taxes on millions of dollars in aid payments after all. The Internal Revenue Service\u00a0said Wednesday\u00a0that most of the payments people who live near East Palestine, Ohio, received to help them pay for temporary […]<\/p>\n","protected":false},"author":459,"featured_media":11328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-11327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nIRS says it will refund taxes extracted from Ohioans who got financial assistance after Norfolk Southern derailment disaster | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"\u201cI don\u2019t know why they didn\u2019t do that from the very beginning,\u201d East Palestine resident Misti Allison said.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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