The United States Internal Revenue Service (IRS) has issued frequently asked questions and answers (FAQs) regarding Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs. The FAQs are at FS-2021-16 and detail the tax consequences for individual recipients and the reporting requirements for the states and local governments and employers, as applicable. Some SLFR Fund recipients may have to report certain payments as income and may owe tax depending on the purpose of the payment. The FAQs also provide answers regarding payments used to assist with childcare or other basic needs. States and local government administrators will find answers regarding their filing requirements, including when Forms 1099 need to be filed. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available.