TSCPA News

IRS Updates FAQs on Taxability and Reporting of Coronavirus State and Local Fiscal Recovery Funds

September 28, 2022

The IRS recently updated its frequently asked questions (FAQs), FS-2022-36, on Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). The FAQ update adds new questions 15 through 17.

The funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs. The SLFR Funds provide substantial flexibility for each government to meet local needs, including support for households and individuals hardest hit by the crisis. More information about the uses of SLFR Funds may be found in the Interim Final Rule.

These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.