Brown, PC
Main Menu
Schedule Your Initial Consultation:
View Our Practice Areas

IRS to Streamline Ebola Donations for Employees

The Internal Revenue Service has made changes in order to help with the Ebola outbreak in West Africa, by removing a potential tax angle that might discourage some workers from giving under workplace leave-donation programs.

According to the tax code, employees are often able to arrange for their employers to make charitable donations of their unused time off, such as vacation or sick leave. There are several different structures for these programs that vary slightly. Typically, the employer will pay a charitable organization a cash sum equal to the value of the donated time.

However, many of the programs have encountered cumbersome tax rules that have an impact on the employee who donated. Employees are often required to recognize their donated time as income, and then get a charitable deduction to offset the income. This structure can lead to unexpected withholding from their paychecks as well as complicated calculations during tax-filing season.

In the past, the IRS has allowed employees to bypass those hassles by announcing that it would not require them to recognize the value of their donated time off as income. On Wednesday, the IRS said it would do the same for donations to help with the Ebola outbreak in West Africa.

Source: McKinnon, John, "IRS Eases Tax Burden on Ebola Donations," The Wall Street Journal, October 29th, 2014

No Comments

Leave a comment
Comment Information
Print this Page
Email Us For A Response
Set Up An Initial Consultation Now: 888-870-0025

Work Directly With Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy