IRS issues guidance on disaster-related leave-sharing plans.

Last year's hurricane season, and the prolonged recovery period, brought heightened interest in "leavesharing" plans as a way for employers to help their employees affected by the storms. Employer-sponsored plans set up to aid employees who need long periods of time off from work because of serious medical conditions have been around--and accepted by the IRS--for many decades. And five years ago, in the aftermath of 9/11, the IRS granted temporary approval to leave-based charitable donation plans. Now, as employers and employees nationwide have responded to the devastation in the Gulf Coast (and a new hurricane season is upon us), the IRS offers guidance on leave-sharing plans set up to assist employees affected by a major disaster.

Details and Definitions

In Notice 2006-59 [2006-28 I.R.B. …