Congress Repeals UBIT on Parking and Transportation Fringe Benefits Expenses

Congress Repeals UBIT on Parking and Transportation Fringe Benefits Expenses

As part of the spending bill that passed in December 2019 (The Further Consolidated Appropriations Act, 2020), Congress repealed a provision from the 2017 tax law that required non-profit organizations to pay a 21% unrelated business income tax (UBIT) on certain employee benefits, including parking and transportation expenses. 

 

This will relieve non-profits from the arduous task of trying to calculate such benefits and expenses under sections 274 and 512 of the Internal Revenue Code.  

 

Organizations should consult their accountants regarding taxes paid or owed as a result of this provision because the repeal is retroactive to December 31, 2017. 

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