The Taxpayer Certainty and Disaster Tax Relief Act of 2019 repealed Internal Revenue Code Section 512(a)(7). This Section had imposed unrelated business income tax on the qualified parking and transportation fringe benefits that nonprofit organizations provided to their employees. Any nonprofits that paid this tax can now claim a refund or credit by following the IRS’s recently published guidance on its website. As expected, a nonprofit organization will need to file an amended return and follow the detailed instructions that can be accessed by clicking HERE.
More more information on this topic please contact Larson & Company today.