Some good news to share as we head into 2020!
Last January, McKonly & Asbury Partner & Director of Tax Services, Mark Heath informed us about one of the unfortunate consequences of the Tax Cut and Jots Act (TCJA) and the so-called “Parking Lot Tax.” This tax on expenses related to an organization’s qualified parking (and other qualified transportation fringes) was met with significant opposition, particularly as it impacted exempt organizations in the form of Unrelated Business Income.
On December 20, 2019 (perhaps as an early Christmas present), President Trump signed a bipartisan spending bill into law that contained the repeal of the Parking Lot Tax for nonprofit and religious organizations. The repeal is retroactive, and as if the original legislation was never enacted. This is welcome relief to the nonprofit community that saw the original provision as burdensome and punitive to a sector that should not have been impacted by the legislation in the first place.
At this point, it’s unclear how organizations need to approach a refund of any previously paid tax, but the IRS is expected to issue guidance on the process in the near future.
For more information or questions on this repeal, please contact McKonly & Asbury’s Nonprofit Team by clicking here. You can also learn more about McKonly & Asbury’s special reputation for service to the nonprofit sector of the economy by visiting macpas.com/nonprofit.