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CLIENT ALERT: No More ‘Parking Taxes’ for Non-Profit Organizations

Karyn A. Nunn

February 03, 2020

As many of you know, there was a controversial section of the 2017 Tax Cuts and Jobs Act that imposed a “parking tax” on non-profit organizations when the organizations provided parking or other transportation costs for their employees (“certain fringe benefit expenses”). On December 20, 2019, this provision was retroactively repealed when the Taxpayer Certainty and Disaster Tax Relief Act was signed into law.  Since it was retroactively repealed, it is to be treated as though the unrelated business income tax imposed on the fringe benefit expenses never existed. Moving forward, non-profits will no longer be required to pay this tax, and organizations that paid the “parking tax” will be due a refund.

For those that will be due a refund, the IRS has been instructed to establish a streamlined process of requesting the refunds. Instructions for that process will hopefully be announced soon.

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