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Sign on to this Letter to Congress! Repeal the Parking Tax on Nonprofits!

Posted By Benjamin Bullock, Together SC, Thursday, March 28, 2019

It was in a paragraph somewhere...

One of those "little things" in the sweeping 2017 Tax Reform Act was a new 21% "Unrelated Business Income Tax" (UBIT) on charitable nonprofits on "Parking Benefits", designed to somehow "maintain parity" for the repeal of such tax deduction for for-profit companies.

What Parking Benefits?

Does your organization provide parking for your employees? Perhaps some spaces in a garage or parking lot? Or perhaps you provide bus passes or Uber/Lyft credits for your employees? For-profit companies used to be able to write such expenses off on their taxes, while nonprofits were already exempt. When Congress repealed that deduction, they decided that it was "only fair" to make nonprofits pay an extra tax, where there was none before. Taxes for 2018 are due on April 15, 2019.

We don't think that's fair at all.

Why should our donors' contributions go to pay an income tax on an expense, and one that for-profit businesses don't have to pay? Together SC's position on this is: 

“Charitable nonprofit organizations provide services and social good for all South Carolinians, and in recognition, are exempted from income and other taxes. These exemptions allow the contributions of citizens to be used completely to further the missions of the causes they care about, and not to have a portion of their contributions be diverted by taxes.”

Most of Congress Agrees!

Repealing this tax isn't very controversial, but it's pretty low on Congress' priorities right now. A national coalition of nonprofits is asking House and Senate Tax leaders to make repealing this tax a priority, through this sign on letter. Will you sign on behalf of your organization before April 3? 

Learn more about this new tax on nonprofits.

Tags:  Collective Voice  Congress  National Council of Nonprofits  Public Policy  Sign-On Letter  Tax Reform  UBIT  Washington 

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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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