Leave-based Donations Must Be Made By January 1

December 13, 2002 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) has informed taxpayers that Notice 2001-69, which provides guidance for leave-based donations, will not be extended to payments on or after January 1, 2003.

Notice 2001-69 provides guidance regarding the tax treatment of an employer’s payment to an organization described in section 170 (c) of the Internal Revenue Code; in exchange for vacation, sick, or personal leave donations made by an employee.

Provided payments to qualifying organizations are made prior to January 1, 2003, the IRS will not assert that payments constitute gross income or wages of an employer or received by an employee.

Amounts applied under Notice 2001-69 do not need to be included in Box 1, 3, or 5 of the Form W-2.