Thanks to advocacy by the League of American Orchestras and its member orchestras, in partnership with the broader nonprofit sector, the 21% Unrelated Business Income Tax (UBIT) on parking and commuting benefits that was created by the 2017 tax reforms has been retroactively repealed. The unprecedented tax on nonprofit expenses created significant new costs to orchestras and the broader nonprofit sector, diverting essential resources needed for serving communities. On December 20, 2019, the FY20 spending and tax package retroactively repealed the UBIT on parking and commuting benefits. On January 22, 2020 the Internal Revenue Service issued guidance on how to seek a refund for taxes paid on parking and commuting benefits. Please contact the League’s Washington, D.C. office at advocacy@americanorchestras.org about any concerns related to the refund process.
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