Most people who received money from Norfolk Southern in the wake of last year's fiery train derailment in eastern Ohio won't have to pay taxes on millions of dollars in aid payments after all.
The Internal Revenue Service said Wednesday that it had decided that most of the payments people who live near East Palestine, Ohio, received to help them pay for temporary housing or replace their belongings aren't taxable because the Feb. 3, 2023, derailment that forced thousands of people to evacuate their homes qualified as “an event of a catastrophic nature.”
