Suffolk residents who took advantage of a septic-system replacement program deserved to be upset about having to pay income taxes on grants they received from the county. In a belated ruling, the Internal Revenue Service said that the money was not tax-free and that the recipients would be liable. As East Hampton Town Supervisor Peter Van Scoyoc pointed out, the extra income could push some residents into higher tax brackets, meaning that they could owe yet more. This is for a program intended to benefit drinking water and the environment — and not the homeowner directly, he also said.
Local, state, and congressional officials have asked the I.R.S. to stand down. They should keep at it. The septic program might still be a work in progress, but property-owning taxpayers should not have to shoulder this additional burden, especially since the new and expensive wastewater systems are now required for new construction and substantial home additions.