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IR-2023-81, April 14, 2023
WASHINGTON — The Internal Revenue Service today issued frequently asked questions (FAQs) to provide guidance for victims who have received state compensation payments for forced, involuntary, or coerced sterilization, in Fact Sheet FS-2023-11.
Some states have enacted legislation to compensate victims of forced sterilization under state programs. These states have made payments to those victims pursuant to the legislation. The FAQs address the federal income tax consequences of these payments.
More information about reliance is available.
IRS-FAQ