The Internal Revenue Service (IRS) has released guidance on calculating the tax on qualified parking benefits, which took effect this year.
Notice 2018-99 was published on December 10, 2018.
According to the Society for Human Resource Management (SHRM):
The previous lack of guidance for tax-exempt organizations “created a lot of confusion and conflicting opinions about how nonprofits should go about calculating their tax liability to comply with the requirement,” according to the UBIT Coalition, representing nonprofit employers opposed to the parking-benefits tax.
The clarification is designed to provide some relief to non-profit and tax-exempt organizations, which currently are required to pay a 21 percent “unrelated business income tax on subsidized parking” provided to employees.
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The information included in this blog post originally appeared in an article from SHRM on December 14, 2018, written by Stephen Miller, CEBS.