What conditions must be met to donate to a major disaster leave-sharing plan?

An employee who deposits accrued leave in an employer-sponsored leave bank for use by other employees adversely affected by a major disaster (a major disaster leave-sharing plan, see ¶42,126 ) does not realize income or have wages, compensation, or rail benefits with respect to the deposited leave if certain conditions are met:

1. The plan must treat payments made by the employer to the leave recipient as wages for purposes of FICA (the Federal Insurance Contributions Act), FUTA (the Federal Unemployment Tax Act), and income tax withholding; as compensation for purposes of RRTA (the Railroad Retirement Tax Act); and as rail wages for purposes of RURT (the Railroad Unemployment Repayment Tax), unless otherwise excluded by the Internal Revenue Code.

2. A leave donor may not claim an expense, charitable contribution, or loss deduction on account of the deposit of the leave or its use by a leave recipient.