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May 20, 2022

IRS issues guidance on tax treatment of payments from employer leave-based donation programs to aid victims of war in Ukraine

The IRS has issued guidance (Notice 2022-28) on the federal income and employment tax treatment of cash payments employers make under employer leave-based donation programs to help victims of the war in Ukraine, which began February 24, 2022. These donation programs allow employees to forego accumulated leave and employers to make cash donations, up to the dollar value of the leave, to IRC Section 170(c) organizations that aid victims of the war. A Tax Alert is forthcoming.