Parking Tax

Last month, the IRS published preliminary guidance (Notice 2018-99) on the new unrelated business income tax (UBIT) on parking and transportation. The notice recommends that nonprofits use a four-step calculation to determine their taxes on parking spaces they own or lease. The notice also gives nonprofits the option of retroactively minimizing their UBIT liability by reducing the number of parking spaces they provide to employees by March 31, 2019. A separate notice provides for waiver of tax penalties for nonprofits that failed to submit quarterly estimated tax payments for the new tax on transportation benefits. The IRS guidance is open for public comments through February 22, 2019.

Post date: January 23, 2019
Topics: National News

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