IRS provides guidance about limiting impact of new taxes on nonprofits

Posted on: December 12, 2018

“The Treasury Department and IRS on Monday released guidance that officials said is designed to minimize the impact of a tax on nonprofits’ parking-benefit expenses that was created by the tax law President Trump signed last year,” writes Naomi Jagoda in Monday’s (12/10) The Hill (Washington, D.C.). “ ‘Treasury is sensitive to the concerns of the tax exempt community, and hopes this guidance can significantly limit the impact on non-profit groups,’ Treasury Secretary Steven Mnuchin said in a news release…. ‘The guidance issued today aims to provide flexibility while minimizing the burden on non-profit groups that provide employee parking.’ The 2017 tax law eliminates businesses’ ability to deduct the expenses they incur for providing their employees with fringe benefits such as parking. It also subjects nonprofits to an unrelated business income tax of 21 percent for the transportation benefits they provide to their employees. The tax on nonprofits’ transportation benefit expenses received heavy criticism from charities and religious organizations, who argue that the tax would cause them to divert resources that they would otherwise use to further their missions. The tax for nonprofits also has garnered bipartisan criticism in Congress.” For more information about this topic from the League of American Orchestras, click here

Posted December 12, 2018