The IR 2020-119 was released by the IRS on June 11, 2020. Highlighted is Notice 2020-46 where guidance is given to employers regarding cash payment donations that are made to charitable organizations that aid and assist COVID-19 victims. Notice 2020-46 explains that in situations where employees have forgone sick, vacation and person leave time, employees will not receive the value of the donation as income and therefore, cannot be claimed as deductions. This notice clarifies that employers may deduct these cash payments as a business expense or as a charitable donation. Respective requirements must be met in either section.
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