IRS issues guidance on nonprofit parking tax refunds

The IRS recently posted guidance following passage of its Taxpayer Certainty and Disaster Tax Relief Act of 2019 explaining how nonprofits can seek refunds of the “parking tax.”  The Act also simplified the private foundation excise tax on investment income and provides special treatment for disaster relief donations to public charities.   The Internal Revenue Code had imposed a 21% tax on employee transportation benefit expenses incurred by nonprofits. In December 2019, Congress passed this legislation to retroactively repeal the so-called parking tax, however, opening the door for the many nonprofits that had already paid the tax to seek refunds.

Procedure for Claiming Refunds

To claim a refund of the tax reported on its Form 990-T for 2017 or 2018, click here for a detailed explanation.  Or, contact a Dugan & Lopatka professional at or (630) 665-4440 to guide you through the process.  

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