IRS Announcement: Amounts Paid by Suffolk County (NY) to Residents for Septic System Upgrades Not Income (IRC §61)

Payments by Suffolk County, NY, to residential property owners under the county’s Septic Improvement Program (SIP Program) are not required to be included in the gross income of the payment recipients for federal income tax purposes, the IRS announced Dec. 2. The Agriculture Secretary has determined that the SIP Program payments are primarily for the purpose of conserving soil and water resources and protecting or restoring the environment. The announcement provides a determination that the SIP Program payments do not increase substantially the annual income derived from the property within the meaning of I.R.C. §126(b)(1)(B) and meets the other requirements ...