IRS Provides Recordkeeping Relief
New law increases deduction limit for corporate cash contributions for disaster relief; IRS provides recordkeeping relief- From IRS.gov
WASHINGTON — The Internal Revenue Service on 1/29/21, explained how corporations may qualify for the new 100% limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA of 2020), enacted December 27, temporarily increased the limit, to up to 100% of a corporation's taxable income, for contributions paid in cash for relief efforts in qualified disaster areas.
Under the new law, qualified disaster areas are those in which a major disaster has been declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. This does not include any disaster declaration related to COVID-19. Otherwise, it includes any major disaster declaration made by the President during the period beginning on January 1, 2020, and ending on February 25, 2021, as long as it is for an occurrence specified by the Federal Emergency Management Agency as beginning after December 27, 2019, and no later than December 27, 2020. For a list of disaster declarations, visit FEMA.gov.
Keep reading the full IRS article HERE
Need support, guidance or assistance on your business taxes? Let the professionals at Handle It help. firstname.lastname@example.org, 833-202-7676