Q: Does your nonprofit need to be concerned about the parking lot tax?

A: No, the parking lot tax affecting nonprofit organizations that was originally part of the Tax Cuts and Jobs Act of 2017 has been repealed, effective December 20, 2019.

It taxed transportation benefits employers give workers, such as providing free parking in areas where people normally pay to park.

With the repeal, nonprofit organizations will be able to obtain a refund of the taxes they already paid in 2017 or 2018 due to the now-repealed provision. To claim a refund or credit, the IRS instructs nonprofits to file an amended Form 990-T. Refer to the IRS instructions for filing the amended Form.

For more information, please refer to this article by Church Law & Tax.

February 2020