IRS Information Letter: Reporting Payments under Grant Program (IRC §6041)

IRS cannot disclose under tax code Section 6103 whether a certain unnamed entity must furnish a Form 1099-G regarding grant payments paid to homeowners under a program, the IRS determined. Section 6103 requires authorization from the entity prior to releasing tax return information which the IRS has not obtained, the IRS stated. The IRS then went on to provide general information about reporting requirements under Section 6041, including whether payments can qualify as exempt from income under the general welfare exclusion. [IRS Info. Letter 2020-0024]

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