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IRS: Japan Earthquake-Tsunami Constitute ‘Qualified Disaster’ for Tax Purposes

IRS Logo The IRS announced today (IR-2011-37) that the Japan earthquake and tsunami constitute a qualified disaster for purposes of § 139. Notice 2011-32, 2011-18 I.R.B. ___ (May 2, 2011). As a result, recipients of qualified disaster relief payments can exclude those payments from income. In addition, employer-sponsored private foundations can assist employee victims without adversely affecting their tax-exempt status.


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