IRS Announces Tax Guidance Related to Ebola Outbreak in West Africa
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MariuszBlach/iStockphoto/Thinkstock(WASHINGTON) — The Internal Revenue Service issued tax guidelines regarding charitable and other relief related to the Ebola outbreak in Guinea, Sierra Leone and Liberia.
The IRS press release notes two tax designations designed to promote donations and aid for West Africa. Employees, the agency says, “may donate their vacation, sick or personal leave in exchange for employer cash payments made to qualified tax-exempt organizations providing relief” to Ebola victims in West Africa. In doing so, an employee would forego leave in exchange for employer cash payments made before Jan. 1, 2016. That donated leave will not be included in income or wages of the employee, and employers can deduct the amount of the cash payment.
The second guideline allows American employees in West Africa to receive reimbursement from an employer-sponsored charitable organization for medical expenses incurred as a result of the outbreak, without the reimbursement being included in the individual’s income for federal tax purposes.
The announcement follows similar steps taken following other international disasters, including the Japan earthquake and tsunami and the Haiti earthquake.
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