By Kari Jolly, Senior Tax Associate | Not-for-Profit Team
Guidance Released on How Tax Exempt Organizations Can Retrieve Refunds of the UBIT for Parking Fringes
In response to the December 2019 Taxpayer Certainty and Disaster Tax Relief Act (the “Act”) which retroactively repealed IRC Section 512(a)(7) of the 2017 Tax Cuts and Jobs Act, the IRS released guidance outlining the steps exempt organizations need to take in order to recoup unrelated business income taxes remitted with 2017 and 2018 returns.
Excise Tax Refund Process
In order to receive a refund, taxpayers are required to file an amended Form 990-T relevant to the year in which the tax was paid. Along with the amended Form 990-T, taxpayers must include a statement citing the specific reason for the refund request, which in this case would be repeal of section 512(a)(7). In accordance with IRC Section 6511, taxpayers have limited time to amend their returns and request the refund. Keiter recommends that taxpayers wishing to pursue refunds move promptly to preserve their rights. Consult your tax advisor for further details and guidance.
Additional Tax Resources
- Nonprofit Parking Tax Repealed: Impact on Tax Exempt Organizations
- Not-for-Profit Board Review of Form 990
- IRS Leans on Technology for Discovering Non-Compliance
- Nonprofits Request Delay in New UBIT Rules Implementation
- 2019/2020 Tax Planning Guide
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.