Leave-donation programs supporting Hurricane Sandy victims may receive favorable tax treatment; IRS expedites charity applications

Exempt Organizations Tax Services Update

The IRS and Treasury have announced the availability of special relief intended to encourage support for the victims of Hurricane Sandy. Under newly-issued guidance, qualifying employer leave-donation programs will receive favorable income and employment tax treatment. The IRS and Treasury previously made similar relief available in the wakes of the terrorist attacks of September 11, 2001, and Hurricane Katrina in 2005. Additionally, the IRS will expedite its review of Form 1023 applications submitted by organizations seeking to provide relief for victims of the hurricane.

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