WASHINGTON — The Internal Revenue Service said Friday that oil spill victims who receive BP payments for lost wages will have to pay up come tax time.

Under current law, BP payments for lost wages are taxable — just like the wages would have been, the IRS said in tax guidance. However, payments for physical injuries or property loss are generally tax free.

Payments for emotional distress? Taxable, though medical expenses related to the emotional distress are deductible.

BP officials have agreed to create a $20 billion fund for spill victims, as well as a $100 million fund to support displaced oil rig workers.

The IRS issued the guidance to help spill victims sort through the law's complexities.

The agency has posted tax information for oil spill victims on its website and plans to hold forums in seven Gulf Coast cities on July 17 to help victims with tax troubles or questions.