The NAM Blog
Blog Home All Blogs
The NAM Blog keeps you up-to-date on the most important news and notes. If you have an idea for a blog entry, please contact us at


Search all posts for:   


Top tags: COVID  COVID-Finance  COVID-Resources  COVID-HR  COVID-Webinars  COVID-SelfCare  COVID-States  advocacy  advocacy lobbying  featured member  fringe benefit  Mergers and Acquisitions Between Nonprofit Organiz  Nonprofit Overhead  Nonprofit Oversight  nonprofit overtime  parking expenses  qualified transportation  tax deduction 

Important news for tax-exempt organizations

Posted By Nonprofit Association of the Midlands, Wednesday, December 19, 2018

AICPA, Not-for-Profit Section News
December 11, 2018 – Volume 18 No. 28

The Internal Revenue Service has issued interim guidance regarding the treatment of qualified transportation fringe benefit expenses paid or incurred after Dec. 31, 2017. The new rules will help you determine the amount of parking expenses that are no longer tax deductible for for-profit taxpayers and the corresponding increase in unrelated business taxable income (UBTI) for not-for-profit taxpayers. 

Under a special rule, employers will have until March 31, 2019, to change their parking arrangements thereby potentially enabling them to reduce or eliminate potential UBTI with respect to parking fringes. And it may be possible to avoid having to file a Form 990-T, Exempt Organization Business Income Tax Return, altogether.

For purposes of imputing UBTI under IRC Section 512(a)(7) for not-for-profit organizations, depreciation is not included in “total parking expenses.” Notice 2018-99 also offers a reasonable four-step methodology for determining the amount of UBTI resulting from the provision of employee parking.

The IRS also announced that it will provide estimated tax penalty relief in 2018 to some tax-exempt organizations that offer these benefits and were not required to file a Form 990-T in their prior filing season.

Tags:  fringe benefit  parking expenses  qualified transportation  tax deduction 

Share |
PermalinkComments (0)