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Is the Parking Lot Tax in Your Future?

Use this four-step analysis to get the answer.

Is the Parking Lot Tax in Your Future?

Editor’s note: On December 20, 2019, the “parking lot tax” was officially repealed. Churches wanting to claim a refund for unrelated business income tax (UBIT) due to the repeal must file an amended Form 990-T for the applicable year or years. Go to the IRS website for specific guidance.

In IRS Notice 2018-99, the IRS provides guidance for implementing the new unrelated business income tax on qualified transportation fringe benefits, including employer-provided parking, provided by nonprofit organizations, including churches. The analysis remains straightforward for nonprofit organizations that provide a qualified transportation fringe benefit by paying a third party. The nonprofit organizations will pay unrelated business income taxes on the expense associated with providing the benefits excluded from the employee’s taxable income. Therefore, churches providing mass ...

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  • December 12, 2018