The Taxpayer Certainty and Disaster Tax Relief Act of 2019 was signed into law on December 20, 2019. The new Act not only provides relief for taxpayers affected by disasters but also retroactively lays to rest the very complicated and unfavorable not-for-profit “parking tax” created by the Tax Cuts and Job Act of 2017. That law changed the tax treatment of employee transportation fringe benefits, and as a result of that change many not-for-profits suddenly found themselves having to pay tax on the value of parking and mass transit benefits provided to their employees.
The repeal of this confusing tax law is a victory for not-for-profit organizations. The new law brought a wonderful holiday gift to organizations that had previously paid the tax, as the repeal is retroactive, so it is as if the law never existed. This means any not-for-profit organization that paid the “parking tax” may file for a refund of the previously paid tax.
While the IRS has not yet issued any guidance on how not-for-profit organizations may receive a refund, rest assured the not-for-profit services group at Ellin & Tucker has their pulse on the situation. We are happy to answer any questions about how the Act may affect your not-for-profit organization.