tax news — April 05, 2011

IRS Releases Guidance for Japan Disaster Victims

by Michael Jenkins

The IRS is shedding a little brighter light on the awful Japan disasters in March of 2011 by declaring them qualified disasters for federal tax purposes.

Some of the highlights of this declaration are (from IRS):

"The guidance allows recipients of qualified disaster relief payments to exclude those payments from income on their tax returns."

"Also, the guidance allows employer-sponsored private foundations to assist employee victims in areas affected by the March 2011 earthquake and tsunami in Japan without affecting their tax-exempt status."

"The IRS will presume that qualified disaster relief payments made by an employer-sponsored private foundation to employees and their family members in areas affected by the earthquake and tsunami in Japan are consistent with the foundation's charitable purposes."

Read the remainder of this guidance here for full details.

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