On December 20, 2019, the federal government spending package titled, the Further Consolidated Appropriations Act, 2020 (the Act) was signed into law. The Act included a provision repealing Section 512 (a)(7), which imposed an unrelated business income tax on qualified transportation fringe benefits for nonprofit organizations.
The IRS’s staffing shortages have been well publicized and audits of individuals have decreased in the past several years. But it’s a mistake to assume that the agency has stopped scrutinizing not-for-profits and conducting audits when it deems necessary. If your organization receives an audit letter, you need to know what the process involves and how you can help resolve it as quickly as possible.