Suffolk County Comptroller John Kennedy has called on the IRS to decide whether residents should pay taxes on grants for septic tank upgrades.
Kennedy says the IRS should not force residents to include the grant in their income when calculating taxes. Kennedy issued tax forms to residents who accepted $10,000-$20,000 grants to upgrade their septic systems.
This was in direct contention with the opinion of the county executive’s office. They believe that septic installation companies who received the grants should pay the tax.
Homeowners worry they will be responsible for thousands of tax dollars that they do not necessarily have.
Newsday reports Kennedy will not rescind the tax forms already sent out, until the IRS rules otherwise.
