Following Calls For Resolution Led By Schatz, IRS Announces Relief For Red Hill Residents Saddled With Unfair Tax Burden

WASHINGTON – Following calls for relief led by U.S. Senator Brian Schatz (D-Hawai‘i), the Internal Revenue Service (IRS) today announced it will exempt unfair tax burdens incurred on reimbursements made to some residents impacted by the Red Hill fuel leak crisis.

“These taxes were unfair and unexpected, and I’m glad we were able to fix this,” said Senator Schatz. “I thank the IRS and DoD for working with us to quickly resolve this. It’s now up to the IRS to make sure that every taxpayer impacted by this mistake is aware of this fix and any taxes on these reimbursements already paid for are returned.”

Last month, Senator Schatz convened a meeting with senior officials from the Department of Defense, the IRS, and the Treasury Department to call for an exemption on the unfair taxes. Schatz also joined Hawai‘i’s congressional delegation in a letter to the IRS urging the agency to find a resolution.

###