“Qualified disaster” declaration allowing employer-sponsored charities to provide relief (Michigan)

Employer-sponsored private foundations and donor-advised funds may provide assistance to the sponsoring employer’s employees.

Employer-sponsored private foundations and donor-advised funds

The IRS issued a release announcing tax relief for taxpayers in Michigan affected by June 2021 storms. This follows the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA).

Read the IRS release—MI-2021-01 (July 21, 2021)

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]

The tax relief is provided by the IRS to affected taxpayers who now have until November 1, 2021, to file various individual and business tax returns and make tax payments. Read TaxNewsFlash
 

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

Carrie Garber Siegrist | +1 202 533 3056 | carriesiegrist@kpmg.com

 

 

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