Important income tax information for FEMA grantees

I'd like to share this response to a question regarding FEMA grant recipients and their 2011 income taxes:

"During Income Tax Season, we gets numerous inquiries asking if the funds received from FEMA and ONA are to be claimed on income tax. The answer is no. Disaster funds are not taxable.

Applicants who suffered damage due to a Federally declared disaster may be able to claim some of their losses on their income tax and should contact the IRS at 1-800-829-1040 for further information.

They will not receive a 1099 from FEMA; However SBA loans are interest accruing loans; the interest may be tax deductible. The 1099 was most likely from the SBA. I would refer all these inquires to the IRS phone number above or the SBA at 1-800-659-2955."