Complete Story


Ways and Means Hearing to Focus on Fringe Benefits Tax

The tax is proving to be a huge burden for the nonprofit community

The House Ways and Means Oversight Subcommittee will hold a hearing June 19 focused on ending the 21 percent unrelated business income tax on certain employee benefits provided by associations and other tax-exempt organizations. OSAE, ASAE and its UBIT Coalition have been pushing Congress to repeal the tax for more than a year.

The tax, enacted as part of the GOP-led tax overhaul in 2017, is on the value of so-called fringe benefits, such as free parking and mass transit assistance, that nonprofit employers offer or are required to provide to employees. The tax is proving to be a huge burden for the nonprofit community, including churches and small charities, that have little or no experience dealing with the IRS and insufficient guidance on how to calculate the value of parking and other benefits provided to their employees.

Reps. Mark Walker (R-NC) and Tom Suozzi (D-NY) introduced a bill in March to repeal the fringe benefits tax. The bill is a companion to legislation introduced in the Senate by Sens. James Lankford (R-OK) and Chris Coons (D-DE). Many other lawmakers on both sides of the aisle have also called for eliminating the tax.

This article was provided to OSAE by the Power of A and ASAE's Inroads.

Printer-Friendly Version