IRS PLR: State In-Home Supportive Care Payments Excludable From Income (IRC §131)

The IRS has published a private letter ruling on IRC §131, concluding that: 1) payments made under the State’s in-home supportive care program to individual care providers for in-home supportive care provided to eligible program members residing in the same home will be treated as difficulty of care payments excludable from the provider’s gross income under IRC §131; and 2) taxpayer is not required to report these payments as wages subject to income tax under sections 6041 or 6051, but may refer to Notice 2014-7 for information on reporting and withholding obligations for taxable years in which the payments are ...