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.




