IRS Program Converts Vacation to Donation

WASHINGTON -- The Internal Revenue Service on Thursday announced a new program to encourage workers to give up unused vacation time and sick days that could be turned into charitable contributions to aid the victims of Hurricane Katrina, The Associated Press reported.

Employers would convert the donated time into cash contributions to charities and workers would be able to deduct the amount donated from their federal tax return, officials said.

Officials refused to provide any estimates of lost revenue to the government from the utilization of this new deduction.

For workers to be able to take advantage of the program, their employers will have to set up a leave-based donation program under guidelines that will be published by the IRS. The program will cover unused vacation time, unused sick leave and unused personal leave.

Even workers who do not itemize deductions on their tax returns, which covers about two-thirds of all filers, will be able to participate in this program, the IRS said.

-- NSSCPA.org News Staff

Posted on 9/8/05

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