Podcast: Tax Reform and Its Impact on Exempt Organizations, One Year In
Podcast - New Unrelated Business Taxable Income Liability for Providing Certain Fringe Benefits
On July 28, 2023, Governor J.B. Pritzker signed into law House Bill No. 2068, “Transportation Benefits Program Act” (“Illinois Transit Law”), which requires employers to offer pre-tax transportation fringe benefits (“Transit...more
New Jersey Governor Phil Murphy has signed into law the “Temporary Workers’ Bill of Rights,” providing temporary workers significant rights regarding their employment through temporary help service firms. Notice obligations...more
Governor Jay Inslee signed ESHB 2076 into law on March 31, 2022, making Washington the first state to require minimum per-trip payments, paid sick leave, and workers’ compensation benefits for rideshare drivers. The law also...more
Many Pennsylvania oil and gas leases have what is commonly known as a “market enhancement” royalty clause. These clauses typically prohibit the deduction of any post-production costs that are incurred transforming the raw gas...more
In the wake of President Joe Biden’s executive order revoking the Keystone XL pipeline permit, oil and gas producers are bracing for additional actions. In fact, environmental and activist groups are already targeting oil and...more
On April 27, 2020, the District of Columbia enacted the D.C. Transportation Benefits Equity Amendment Act of 2020. The new law requires certain D.C. employers to reduce the number of employees who commute into the city by...more
On December 20, 2019, Congress retroactively repealed Internal Revenue Code (IRC) Section 512(a)(7), which had increased unrelated business taxable income by amounts paid or incurred for qualified transportation fringes....more
Good news for tax-exempt organizations! The “Further Consolidated Appropriations Act, 2020” (H.R. 1865 — 116th Congress (2019-2020)) (the “Act”) signed into law on December 20, 2019, retroactively repealed Section 512(a)(7)...more
Late on Friday, December 20, 2019, President Trump signed into law government funding legislation for the 2020 fiscal year that includes a provision repealing Section 512(a)(7), commonly referred to as the “parking tax.”...more
Good news to close out the year: The “Further Consolidated Appropriations Act, 2020” (H.R. 1865 - the “2020 Act”) retroactively repeals the much maligned tax on qualified transportation fringe benefits (the so-called “church...more
I was wrong. I was on record opining that the nonprofit parking tax would never be repealed. But, it is a December miracle, because late on Friday, December 20, 2019, President Trump signed a $1.4 trillion spending package...more
The federal Tax Cuts and Jobs Act of 2017 eliminated a federal tax deduction for employers which had allowed them to deduct the cost of providing qualified transportation benefits to employees (thereby removing the tax...more
New Jersey will soon become the first state to require certain employers to offer employees tax-favored transportation benefits. S.B. 1567, also known as An Act Concerning Pre-Tax Transportation Fringe Benefits (the...more
Do you provide parking for your employees? If so, take note: the expense has gone up (and, for tax-exempt employers, may now result in additional tax liability!)....more
In Notice 2018-99, the Internal Revenue Service sets forth interim guidance for taxpayers to determine parking expenses for qualified transportation fringes (QTFs) that are nondeductible and for tax-exempt organizations to...more
Two recent Treasury Notices provide interim guidance to nonprofits trying to calculate (or seeking to avoid) the tax they may have to pay for the provision of certain parking and public transit benefits to their employees,...more
December 10, 2018 saw significant activity with respect to Section 512(a)(7) of the Internal Revenue Code (the “Code”), which requires tax-exempt employers to increase their unrelated business taxable income (“UBTI”) by...more
The IRS issued two pieces of interim guidance with respect to the new treatment of qualified transportation fringe benefits following the changes made by the Tax Cuts and Jobs Act (Tax Act). The Tax Act required parking...more
WASHINGTON – The Internal Revenue Service today issued interim guidance regarding the treatment of qualified transportation fringe benefit expenses paid or incurred after Dec. 31, 2017. The new rules assist taxpayers in...more
On December 15, 2017, the House and Senate conference committee agreed on the terms of the final tax reform bill, previously referred to as the “Tax Cuts and Jobs Act” (the “Act”), which was subsequently approved by both...more
Recently, a CPA lost his own business automobile deduction case in the U.S. Tax Court. The CPA had deducted business automobile expenses based on calculations from an after the fact MapQuest and not a contemporaneous diary...more
Recent legislation in Kentucky and Tennessee: Kentucky and Tennessee have recently been added to the growing list of states allowing the use of public-private partnerships (P3). The Kentucky Legislation (HB 309) was...more
Funding transportation infrastructure in California is becoming increasingly difficult, as diminished gasoline taxes and other state and federal funding sources continue to be insufficient to provide fully for burgeoning...more
As discussed in a prior WorkCite article, the recently enacted Consolidated Appropriations Act, 2016 (the Act) permanently removed the disparity between the taxation of (i) commuter vehicle/transit benefits and (ii) qualified...more
On Friday, December 18, 2015, when President Obama signed the Protecting Americans from Tax Hikes (PATH) Act into law, one of the provisions included in the law made the monthly limit on qualified transportation benefits for...more