“Qualified disaster” declarations allowing employer-sponsored charities to provide relief (Alabama and Kentucky)

Certain employer-sponsored charities allowed to provide disaster relief programs for affected employees

Tax relief for taxpayers affected by severe storms

The IRS today announced tax relief for taxpayers in Alabama and Kentucky affected by severe storms earlier in 2021.

The IRS relief follows the recent disaster declarations for individual assistance granted by the Federal Emergency Management Agency (FEMA).

According to today’s IRS releases—

  • AL-2021-01 (April 29, 2021)—The tax relief provided by the IRS to taxpayers affected by the March 2021 storms in Alabama postpones until August 2, 2021, the due date for filing tax returns (due on or after March 25, 2021, and before August 2, 2021) including tax-exempt organizations operating on a calendar-year basis that have a 2020 return due on May 17, 2021. Read TaxNewsFlash
  • KY-2021-021 (April 29, 2021)—The tax relief provided by the IRS to taxpayers affected by the February 2021 storms in Kentucky postpones until June 30, 2021, the due date for tax return filings (due on or after February 27, 2021, and before June 30, 2021) including tax-exempt organizations operating on a calendar-year basis that have a 2020 return due on May 17, 2021. Read TaxNewsFlash

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 [PDF 340 KB]

 

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

 

 

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