Thursday, February 21, 2019
This past December the Treasury Department and IRS released guidance that officials designed to minimize the impact of the tax on nonprofits’ parking-benefit expenses. Steven Mnuchin said in a press release, “The Treasury is offering tax exempt organizations a roadmap for navigating their responsibilities. The guidance issued today aims to provide flexibility while minimizing the burden on non-profit groups that provide employee parking.” The 2017 tax law eliminates tax exempt organizations’ ability to deduct expenses they incur while providing employees with fringe benefits, like parking. The new law also subjects nonprofits to a 21% tax on transportation benefits. The 21% tax received heavy criticism from nonprofits, who argue that the tax will cause them to divert resources that without the tax would be used to further their missions. To learn more about the Treasury’s guide, click here.