National Disaster Declaration & Impact on Mobility

The recent national disaster declaration by President Trump triggered provisions of IRS code 139, which allows employers to make disaster relief payments tax-free. This may impact certain relocation expenses that may be considered non-taxable.
 
These business-type expenses, which are not W-2 reportable, could include:

• Extended or new temporary living expenses associated with needing to extend the stay in the current location or being unable to move forward with their permanent residence/new location
• Transportation costs to return assignees/transferees to home countries/home locations
• Other situations that occur on a case-by-case basis

Pete Scott, General Counsel to Worldwide ERC, wrote an article regarding this provision. We have included a link here for your easy reference: Worldwide ERC Article