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Abstract: 

On March 13, 2020, President Trump declared the ongoing COVID-19 a national emergency, which constitutes a “qualified disaster” for purposes of IRC §139. Under IRC §139, an individual’s gross income does not include any amount paid to him or for his benefit to reimburse or pay reasonable and necessary personal, family, living, or funeral expenses as a result of a qualified disaster. The Exhibits to this article present a sample program statement that an employer-sponsored foundation can use to establish an IRC §139-compliant employee relief fund, sample language that can be used to publicize cash assistance available for needs arising from the COVID-19 pandemic, and a sample application that eligible employees can use to apply for one-time cash grants that should be excludible from income as qualified disaster relief payments. These sample documents can be modified to reflect payments directly from an employer rather than an employer-sponsored foundation.

Keywords: Disaster-Relief Fund Benefits; Sample COVID-19 Relief Fund Policy; Sample Relief Fund FAQs

Affiliations:  1: Clark Hill PLC.