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Momentum Growing for IRS to Delay Implementation of New UBIT Rules; Action Needed

Posted By Madeleine McGee, Monday, June 25, 2018

Last week, the National Council of Nonprofits sent a comprehensive and compelling letter to the U.S. Department of Treasury and the Internal Revenue Service requesting delay of the implementation of two new taxes on nonprofits from the Tax Cuts and Jobs Act. 

The letter identifies dozens of challenges and questions that nonprofits have with the new federal tax law and demands that the IRS delay implementation of the new unrelated business income tax provisions in Section 512(a)(6) and 512(a)(7) of the Internal Revenue Code until one year after the IRS promulgates final regulations on these new laws. 

Section 512(a)(7) imposes a new, counter-intuitive tax on nonprofits' transportation and parking expenses. Section 512(a)(6) requires nonprofits with business income to pay the tax on each separate "trade or business" and prohibits the blending of profits and losses across lines of business. 

Both changes took effect on January 1, 2018 and both are causing significant confusion for many nonprofits because their applicability is unclear without further guidance from the IRS. 

TAKE ACTION: 
Add your voice to the call for relief!

Go to the IRS public comment form and ask  that Treasury and the IRS delay implementing the two new UBIT subsections until one year after Final Rules are promulgated(In the public comment form’s line for Form/Instruction/Publication Number,fill in "Form 990-T".)

Thanks for taking action!

Tags:  Advocacy  IRS  UBIT 

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