An Unpleasant Tax Surprise for Churches with Employee Parking
Churches and other historically tax-exempt organizations will now have to file federal and likely state income tax returns according to a recently unearthed provision in the newly instituted Tax Cuts and Jobs Act that applies the federal income tax to parking benefits. Hundreds of organizations are now calling for its repeal.
"Tax practitioners who have evaluated Section 512(a) (7) generally believe that the result of this new provision is that tax‐exempt organizations that provide parking to their employees will be subject to unrelated business income tax on the cost of the parking provided. A nonprofit organization that simply allows its employees to park in a parking lot or garage that is part of the organization's facilities will be subject to a tax on the cost of the parking provided," the Evangelical Council for Financial Accountability explained in position statement included in a petition seeking to repeal the provision.
Read more at: https://www.christianpost.com/news/churches-employee-parking-new-tax-additional-filing-requirements-225399/
