03/06/2019

OSAE Among Groups Supporting Bills to Repeal UBIT on Nonprofit Employee Benefits

This tax is proving to be a huge burden for associations and other nonprofit groups

ASAE Supports Lankford, Coons, Walker, Suozzi Bills to Repeal UBIT on Nonprofit Employee Benefits

The Ohio Society of Association Executives (OSAE), the American Society of Association Executives (ASAE) and countless other industry coalition members support legislation introduced in the past few days by Sens. James Lankford (R-OK) and Chris Coons (D-DE), along with Reps. Mark Walker (R-NC) and Rep. Tom Suozzi (D-NY) to repeal a provision in the 2017 Tax Cuts and Jobs Act (TCJA) that assesses a 21 percent tax on the value of so-called fringe benefits – such as free parking or mass transit assistance – that nonprofits provide to employees.

This tax is proving to be a huge burden for associations and other nonprofit groups, 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.

"Momentum for repealing the tax on nonprofit employee benefits is growing on both sides of the aisle," said OSAE President & CEO Jarrod A. Clabaugh, CAE. "Both OSAE and ASAE are hopeful Congress will move repeal legislation this session so that nothing distracts associations and other nonprofits from their core mission."

“Bipartisan support is growing to repeal this onerous tax on nonprofit employee benefits,” said ASAE President and CEO John Graham, FASAE, CAE. “These new tax liabilities create numerous compliance challenges for nonprofits and threaten the financial security and missions of organizations that provide countless services to communities in need and to society as a whole.”