The Internal Revenue Service wants its cut from oil spill victims who receive BP payments for lost wages.
The agency says that, under current law, BP payments for lost wages are taxable, just like the lost wages would have been.
The IRS says payments for physical injuries or property loss are generally tax free.
BP officials have agreed to create a $20 billion fund for spill victims, as well as a $100 million fund to support displaced oil rig workers.
The IRS is planning to hold forums in seven cities in the Gulf region July 17 to help oil spill victims with tax troubles or questions.