The Tax Cuts and Jobs Act enacted in 2017 imposed a parking tax underneath I.R.C. Part 512(a)(7). This parking tax has been retroactively repealed underneath the Taxpayer Certainty and Catastrophe Tax Aid Act signed into legislation on December 20, 2019.
This Act retroactively repeals for tax-exempt organizations the unrelated enterprise earnings tax on disallowed fringe advantages. This implies many not-for-profits now not owe this tax and will probably be owed refunds of quantities associated to this tax that have been reported and paid on Type 990-T over the previous two years.
The 2019 Act additionally simplifies the non-public basis excise tax on funding earnings by changing the 2-tier system (1% and a pair of%) with a flat price of 1.39%. The brand new price is efficient for tax years starting after December 20, 2019.
You probably have any questions on this situation, you possibly can attain Allison Harrell straight at firstname.lastname@example.org or 850-668-8100.
Allison Harrell is a CPA, shareholder, and not-for-profit group chief with the general public accounting agency Thomas Howell Ferguson P.A. CPAs.