The Internal Revenue Service today moved to stop confusion about the taxability of Economic Stimulus Payments received by many taxpayers in 2008.

"People are starting to do their taxes and are noticing that the 2008 return instructs them to report the stimulus payment they got," said IRS spokesman Dan Boone. "Some are mistakenly assuming that means the stimulus payment is taxable."

Boone says that is not the case. The 2008 stimulus payments are not subject to federal taxes.