n-11-32.pdf

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Part III - Administrative, Procedural, and Miscellaneous

Japan Earthquake and Tsunami Occurring in March 2011 Designated as a Qualified
Disaster under § 139 of the Internal Revenue Code

Notice 2011-32

This notice designates the Japan earthquake and tsunami occurring in March
2011 as a qualified disaster for purposes of § 139 of the Internal Revenue Code.
EARTHQUAKE AND TSUNAMI DISASTER
On March 11, 2011, a magnitude 9.0 earthquake occurred, affecting northeastern
Japan and generating a large tsunami which struck the eastern coast of Japan
(collectively “Japan earthquake”). As of March 24, 2011, the Japan earthquake has
resulted in more than 9,800 confirmed deaths, more than 17,500 missing persons, and
approximately 245,000 individuals still taking shelter in evacuation centers. The Japan
earthquake also damaged or destroyed more than 139,000 buildings and 2,000 roads
and led to a serious nuclear incident at a nuclear power plant. USAID Fact Sheet No.
13 (March 24, 2011).
This notice enables employer-sponsored private foundations to assist certain
victims in areas affected by the Japan earthquake, and enables recipients to exclude
qualified disaster relief payments from gross income.
QUALIFIED DISASTER RELIEF PAYMENTS EXCLUDED FROM RECIPIENT’S
GROSS INCOME

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Section 139(a) provides that gross income shall not include any amount received
by an individual as a qualified disaster relief payment.
Section 139(b) provides that a qualified disaster relief payment includes any
amount paid to or for the benefit of an individual—
(1) to reimburse or pay reasonable and necessary personal, family, living, or
funeral expenses (not compensated for by insurance or otherwise) incurred as a result
of a qualified disaster, or
(2) to reimburse or pay reasonable and necessary expenses (not compensated
for by insurance or otherwise) incurred for the repair or rehabilitation of a personal
residence or repair or replacement of its contents to the extent that the need for such
repair, rehabilitation, or replacement is attributable to a qualified disaster.
Under § 139(c)(3) the term “qualified disaster” includes a disaster resulting from
an event that is determined by the Secretary to be of a catastrophic nature.
DESIGNATION AS QUALIFIED DISASTER
The Commissioner of Internal Revenue, pursuant to delegation by the Secretary,
has determined that the Japan earthquake occurring in March 2011 is an event of a
catastrophic nature under § 139(c)(3). Therefore, the Japan earthquake is designated
as a qualified disaster under § 139.
SECTION 501(c)(3) ORGANIZATIONS
Employer-sponsored private foundations may choose to provide disaster relief to
employee victims of the Japan earthquake. Like all organizations described in §
501(c)(3), private foundations should exercise due diligence when providing disaster

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relief as set forth in Publication 3833, Disaster Relief: Providing Assistance Through
Charitable Organizations.
DRAFTING INFORMATION
The principal author of this notice is Sheldon Iskow of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information regarding this notice
contact Mr. Iskow at (202) 622-4920 (not a toll-free call).