San Francisco Tax Preparation / CPA: IRS Extends Leave-Based Donation Program Treatment

Filed in CCH NEWS FEED by on August 28, 2021

The Treasury and IRS have extended the treatment provided in Notice 2020-46, I.R.B. 2020-27, 7, to cash payments made to Code Sec. 170(c) organizations after December 31, 2020, and before January 1, 2022. Under leave-based donation programs, employees can elect to forgo vacation, sick, or personal leave in exchange for cash payments. An employer’s donations under a leave-based donation program are not gross income or wages for the employees who surrendered leave so long as the donations are made in cash to a charitable organization for the relief for victims of the COVID-19 pandemic, before January 1, 2021. The extension is due to the ongoing COVID-19 pandemic