The U.S. Internal Revenue Service announced a determination that a government subsidized project to replace the private portion of a lead service line “does not result in income to the residential property owners” and “accordingly, water systems and state governments are not required to file information returns or furnish payee statements.” The policy means the cost of replacing the private portion of a lead service line is not taxable and, therefore, SRFs and utilities are not required to issue a 1099 to homeowners for these projects.