Good News for Non-Profits
In late December, President Trump signed into a law 2020 government funding legislation that includes a provision repealing the non-profit ‘parking tax.’
The parking tax, which became effective in 2017, required non-profits to pay a 21 percent tax on employee transportation benefits, including parking, transit passes and more. Many non-profits were forced to cut these benefits or pay thousands of dollars in additional Unrelated Business Income (UBIT) Tax.
Thanks to an active coalition of non-profits and churches, the harmful tax was repealed, retroactively. Non-profits that paid the UBIT in 2018 will be entitled to a refund. According to one study, the impacted non-profits will receive an average refund of $12,000.
To claim a refund, organizations should file an amended Form 999-T.
PBO Advisory Group works closely with our non-profit clients on financially related projects and initiatives to help you meet your goals. Please feel free to reach out to Consulting CFO Rick Dahlseid, CPA (inactive), with any questions.