The not-so-popular “Parking Tax” that was imposed under I.R.C. Section 512(a)(7) as part of the 2017 Tax Cuts and Jobs Act has been retroactively repealed under the Taxpayer Certainty and Disaster Tax Relief Act. This Act was only recently signed into law on December 20, 2019.
When imposed, the Parking Tax meant that exempt organizations had to include amounts paid for qualified transportation fringe benefits. This included expenses related to parking facilities used in connection with qualified parking in unrelated business taxable income.
So, what does this mean to your organization now? Not only will you no longer owe this tax, but you will also be due refunds on any amounts related to this tax that were reported and paid on Form 990-T over the past two years, as the repeal is retroactive to the original date of enactment.en
While the IRS still has not released information regarding the refund process, be sure to reach out to a CRI tax advisor with any questions you may have when it comes to filing your amended Form 990-T to claim your refund.