However, recipients of money from BP that was due to physical injuries or property loss are "generally" tax free. According to Doug Shulman IRS Commissioner, “As residents of the region cope with the evolving situation, I want to assure them that the IRS will be doing everything it can to provide tax help to those who need it, we encourage anyone who has an issue with the IRS to contact us and explain their hardship, and we will work with them to find a solution.”
 
There are a number of assistance programs available to those unable to afford their tax bills, for more information and guidance visit their website. If you have a claim to file, contact the disaster assistance website.