IRS Extends Tax Relief On Donated Leave Hours

The Internal Revenue Service extended the end date for tax relief regarding paid leave time donated by employees to coronavirus relief charities until 2022, according to a notice Wednesday.

In Notice 2021-42, the IRS said paid time off that employees donate as cash payments to coronavirus relief charities described under Internal Revenue Code Section 170(c) will continue not to count as income for tax purposes until next Jan. 1.

Employers may deduct the contributions as business expenses or donations, according to a release announcing the notice.

--Editing by Neil Cohen.

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