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 repeal is retroactive to the date of its enactment, January 1, 2018. To date, the IRS has not issued guidance on claiming refunds of previously paid taxes. We here at Daniel Dennis & Company LLP, have been diligently monitoring these developments and we will provide further information once additional guidance becomes available. Please contact us for more information.