Feds Try To Explain, Mitigate Parking UBIT
Nonprofit workers have a lot to deal with but parking costs may soon disappear
Nonprofit workers have a lot to deal with but paying for parking soon might not be one of them. The U.S. Department of the Treasury and the Internal Revenue Service (IRS) yesterday provided some guidance designed to lessen the impact of last year’s tax reform bill.
“Treasury is sensitive to the concerns of the tax-exempt community, and hopes this guidance can significantly limit the impact on non-profit groups,” Treasury Secretary Steven Mnuchin said via a statement. “Treasury is offering tax-exempt organizations a road-map for navigating their responsibilities. The guidance issued today aims to provide flexibility while minimizing the burden on non-profit groups that provide employee parking.”
The 2017 tax law took away tax deductibility for businesses providing certain fringe benefits, including parking. Nonprofits were hit with unrelated business income tax (UBIT) of 21 percent for the transportation benefits provided to employees.
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