From what I understand, there is a federal law that says if you donate PTO for anything other than a medical emergency there are tax issues. But everything I have read refers to a bona-fied PTO Donation Program and a Leave-sharing Bank Plan. This type of donation is if the Employer receives PTO's to dispense to whom ever meets the criteria.
The plan I'm proposing is not an employer based plan. It is strickly voluntary for staff to donate to another staff member that is out for any type of emergency (medical or catastrophic). As I stated above, it is not an employer sponsored plan and there is no employer bank that the PTO's go to. Policy would dictate the criteria for the donation.
The CFO is quoting the falling law found at:
I am trying to establish a plan where employee's can donate PTO to another employee when there is a need (criteria to be determined). However, my CFO is quoting a Federal Law that applies to a bona-fied leave sharing plan.
The law can be found at:
Federal Library
Federal Source Materials
IRS Rulings & Releases
Revenue Rulings & Procedures, Notices, Announcements, Executive & Delegation Orders, News
Releases & Other IRS Documents
Revenue Rulings (1954 to Present)
1990
Rev. Rul. 90-29, 1990-1 CB 11 -- IRC Sec(s). 61
I don't feel this applies to what I am proposing. Any addition help would be greatly appreciated.

Bmck, exactly the same people are going to see this post as the first one you posted. Posting a second time only serves to split the attention each post receives and confuses the responders.

If no one has the answer you want in the first thread you posted it, you're not going to get a different one here.

Bmck, exactly the same people are going to see this post as the first one you posted. Posting a second time only serves to split the attention each post receives and confuses the responders.

If no one has the answer you want in the first thread you posted it, you're not going to get a different one here.

Thanks for telling me and I do apologise.
I am new at this and I keep fumbling around.
It's a bit confusing.

Understandable - that's why I though you could use a little guidance. :)