Full text and guidelines for the Victims of Terrorism Relief Act of 2001, IRC 5891 (STRUCTURED SETTLEMENT FACTORING TRANSACTIONS.)
Alaska Victims of Terrorism Relief Act of 2001
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An act to amend the Internal Revenue Code of 1986 to provide tax relief for victims of the terrorist attacks against the United States, and for other purposes.
Tax information: VCF awards are not subject to federal income tax. See 26 U.S.C. §139(f). Bankruptcy proceedings: The VCF cannot advise you on how your award may be treated if the victim or recipient of the award has filed for bankruptcy protection.
In Revenue Ruling 2003-12 the IRS cited this legislative history and ruled that employer grants to employees to cover medical, temporary housing and transportation expenses incurred as a result of a presidentially declared disaster (which were not reimbursed through insurance or otherwise) were excludable from income, ...
At the end of the process $7 billion was awarded to 97% of the families.