March 17, 2005 | Read Time: 1 minute
The Internal Revenue Service has announced it will allow corporate foundations to provide money to employees of their corporations who need help because they were victims of the tsunamis in South Asia. Without government authorization, such payments would be considered improper “self-dealing” by corporate foundations.
By designating the tsunamis a “qualified disaster” under the federal tax code, the IRS will allow corporate foundations to give employees grants for expenses incurred as a result of the December catastrophe.
The IRS announcement, Notice 2005-23, is available online at http://www.irs.gov/pub/irs-drop/n-05-23.pdf. It appears in Internal Revenue Bulletin 2005-11.
