05 Jun Are these restitution payments taxable to me?

Q. I receive property confiscation restitution payments from communist era Romania. Would they be taxable in the U.S.?

— Unsure

A. It depends.

We’re going to assume the payments you are receiving are Holocaust-related restitution payments.

If that’s the case, then no, the payments would not be taxed by the United States, said Steven Gallo, a certified public accountant and personal financial specialist with U.S. Financial Services in Fairfield.

He said any payments received because of property confiscation during World War II are not taxable in the U.S. under IRS guidelines, he said.

“The IRS does not tax restitution payments made to victims since it is deemed to be a payment for what was taken from them,” Gallo said. “They are simply being made whole, not making a profit.”

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This story was originally published on June 5, 2023.

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