“Qualified disaster” declaration allows employers and employer-sponsored charities to provide relief (California)
FEMA’s disaster declaration allows certain employer-sponsored charities to provide disaster relief programs for affected employees.
The IRS today issued a release announcing tax relief for taxpayers southern California affected by wildfires and straight-line winds that began on January 7, 2025. This follows President Biden’s recent major disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA).
Read the IRS release—IR-2025-10 (January 10, 2025)
FEMA’s disaster declaration also 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 qualifying disaster and certain safeguards are in place so that such assistance is serving charitable purposes. Read Publication 3833. In addition, the disaster declaration allows employers to provide tax-free qualified disaster relief payments to employees affected by the disaster.
The tax relief is provided by the IRS to affected taxpayers who now have until October 15, 2025, to file various individual and business tax returns and make tax payments. Read TaxNewsFlash
For more information, contact your usual KPMG tax professional or one of the following Washington National Tax professionals:
Ruth Madrigal | ruthmadrigal@kpmg.com
Preston Quesenberry | pquesenberry@kpmg.com