IR 2020-119 Provides Guidance on Employer Leave-based Donation Programs That Aid COVID-19 Pandemic Victims

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. 

SPS/GZ is a full-service ACA reporting firm that prides itself in personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file ACA forms.  Let SPS/GZ be your trusted ACA tax form reporting provider. 

Organizations & Accolades

Contact us to learn how SPS/GZ can be your company’s trusted partner for stock plan administration and tax form reporting services.