Repeal of unrelated business income tax on transportation and parking benefits

Beginning January 1, 2018, certain transportation and parking fringe benefits paid to employees of not-for-profit organizations became subject to a very unpopular 21% Unrelated Business Income Tax (UBIT).

On December 20, 2019, Congress acquiesced to pressure from the not-for-profit sector and retroactively repealed, to the date of enactment the tax in the Further Consolidated Appropriations Act of 2020. Although the Law did not include a methodology for recovering UBIT paid since the enactment, we recommend filing an amended 990T tax return for the years filed.