“Qualified disaster” declaration allowing employer-sponsored charities to provide relief (Puerto Rico)

June 15 deadline applies to 2021 returns of tax-exempt organizations, normally due on May 16

Allowing employer-sponsored charities to provide relief (Puerto Rico)

The IRS today issued a release announcing tax relief for taxpayers in Puerto Rico that were affected by February 2022 storms. This follows the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA).

Read the IRS release—PR-2022-02 (March 31, 2022)

FEMA’s disaster declaration allows 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]. 

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

The tax relief provided by the IRS to affected taxpayers also postpones until June 15, 2022, the due date for various tax return filings and tax payments due on or after February 4, 2022, and before June 15. The June 15 deadline also applies to 2021 returns of tax-exempt organizations, normally due on May 16. Read TaxNewsFlash


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

Ruth Madrigal | ruthmadrigal@kpmg.com

Preston Quesenberry | pquesenberry@kpmg.com

 

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