“Qualified disaster” declarations allowing employer-sponsored charities to provide relief (Illinois, Kentucky, Tennessee)

Allows certain employer-sponsored charities to provide disaster relief programs for affected employees

Allowing employer-sponsored charities to provide relief (Illinois, Kentucky, Tennessee)

Following December 2021 tornadoes in Illinois, Kentucky, and Tennessee, the Federal Emergency Management Agency (FEMA) issued disaster declarations for individual assistance.

Read the declarations on the FEMA declared disasters webpage

FEMA’s disaster declarations allow certain employer-sponsored charities to provide disaster relief programs for affected employees. In particular, employer-sponsored private foundations and donor-advised funds may provide assistance to the sponsoring employer’s employees and their family members as long as the individuals receiving aid are affected by a qualified disaster and certain safeguards are in place so that such assistance is serving charitable purposes. Read Publication 3833 [PDF 340 KB]. 

IRS tax relief

The IRS today issued a release announcing tax relief for taxpayers in Kentucky that were affected by the December 2021 tornadoes. This follows the recent disaster declaration for individual assistance issued by FEMA.

The tax relief provided by the IRS to affected taxpayers postpones until May 16, 2022, various tax filing and payment deadlines that occurred starting on December 10, 2021. Read TaxNewsFlash

The IRS on December 20, 2021, essentially provided the same relief to taxpayers in Illinois and Tennessee. Read TaxNewsFlash

For additional information regarding how employers can assist employees affected by a disaster, read a 2021 report [PDF 172 KB] prepared by KPMG LLP: What’s News in Tax: Employers Helping Employees—Disaster Relief

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com


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