Is your organization passing up COVID-19 related tax breaks?
Is your organization passing up COVID-19 related tax breaks? Possibly. Even as the pandemic wanes, Sec. 139 of the Internal Revenue Code remains in effect. It allows employees to exclude from gross income payments made by employers to cover “reasonable” personal, family, living or funeral expenses related to COVID-19 (and other declared disasters). However, employers should exercise caution when making such payments because the IRS only broadly defines what expenses it considers “reasonable.” Although it’s not required, a written policy that explains how your organization administers qualified payments is encouraged. Contact us for more information.