ORLANDO, Fla. – As donations wrap up for the OneOrlando Fund and disbursement starts soon, many victims still have questions about how it is going to work. One of those questions is whether the money the victims receive will be taxed like normal income.
File: Murphy to IRSFile: IRS Tax Response_20160923173339
IRS Commissioner John Koskinen sent a letter to U.S. Representative Patrick Murphy on Friday clarifying monies received from the fund are considered gifts and are not subject to federal taxes.
Earlier this week, Murphy sent a letter to Koskinen asking for guidance on whether people receiving money from the OneOrlando Fund would have to pay taxes.
Koskinen wrote, "payments that individuals receive from a charitable organization as a result of a disaster or emergency hardship are considered to be gifts and are excluded from the gross income of the recipients."
According to officials with the OneOrlando Fund, the value is approximately $27 million. It was created days after the Pulse nightclub shooting.
Friday marks the deadline to donate to the fund.
Fund officials say 351 people filed claims.
"Because the Pulse fund is a privately funded charity funded by individuals making donations out of the goodness of their hearts, this money is intended to be gifts," certified public accountant Ross Oppenheimer said.
Oppenheimer adds according to the IRS, gifts of any monetary size cannot be considered taxable income.
"Provided that the money does not come with any obligation to perform any service in the future, it's a gift and a gift is not taxable under any circumstance or for any limit," he said.
The OneOrlando board meets on Monday to tally up the final number of donations. They will also figure out how they are going to disburse the money between the families of the victims and the survivors.
The first set of checks is set to roll out on Tuesday.
News 6 also reached out to Senator Marco Rubio for his thoughts on the issue. A spokesman emailed us a statement saying, "Senator Rubio does not believe OneOrlando Fund recipients should be taxed."