Back to Blog
IRS Section 139 Qualified Disaster Relief Payments and Coronavirus
Section 139 of the Internal Revenue Code allows employers to provide qualified disaster relief payments to their employees free of income and employment taxes. A qualified disaster relief payment includes any amount paid by an employer to reimburse or pay “reasonable and necessary” personal, family, living or funeral expenses incurred as a result of a qualified disaster. This Compliance Overview presents information on how Section 139 works and how it may apply to the Coronavirus pandemic.