Non-profit Organizations Tax Update

On December 20, 2019, the President signed into law H.R. 1865 – Further Consolidated Appropriations Act, 2020, which among other things, repeals the TCJA law under section 512(a)(7), related to qualified transportation fringe benefits. The law required tax-exempt organizations to include as unrelated business taxable income the value of certain employer-provided employee transportation and parking benefits. The repeal is retroactive to the original date of the enactment, December 31, 2017. It is unclear as to how the IRS will allow taxpayers to claim refunds for taxes paid related to expenses incurred after the original enactment date. We will closely monitor the tax law change and if necessary contact our clients regarding any past filings related to the matter.

Monday, December 23, 2019