Employer Leave-Based Donation Programs announced by the the Internal Revenue Service (IRS). As per the details, the victims of the COVID-19 pandemic in the United States can get aid from IRS employer leave-based donation programs. The purpose of this program guidance is to facilitate those employers whose employees forgo sick, vacation or personal leave because of the Coronavirus pandemic.

IRS Employer Leave-Based Donation Programs in COVID-19

The Internal Revenue Service (IRS) has already brought 3 credits for businesses impacted by COVID-19 pandemic. The victims of the COVID-19 pandemic can get further facilitation by the U.S. Government. Main highlights of IRS Employer Leave-Based Donation Programs are listed below:

  • As per IRS Notice 2020-46 (PDF), cash payments made by the employers to charitable organizations that offer relief to victims of the COVID-19 pandemic in exchange for vacation, sick, or personal leave which their employees forgo will not be treated as compensation.
  • Likewise, employees will not be qualified to receive the value of the leave as income. Therefore, they cannot claim a deduction for the leave that is donated by them to their employer.
  • However, employers are eligible for the deduction of these cash payments as a business expense or as a charitable contribution deduction. The only eligibility criterion is that the employer must otherwise meet the particular requirements of either section.
  • To get additional details of leave donation programs for employers, please refer to IRS Notice 2020-46.

It must be noted that April 15 tax deadline has already been postponed to July 15, both for individuals & businesses and expats by the IRS. Consult us to know whether you qualify for Employer Leave-Based Donation Programs to get COVID-19 aid from IRS. If you want to get the best tax preparation in New York to save your bill in COVID-19, book an initial free appointment with our team.





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