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. The IRS issued the following guidance on January 21, 2020 with regards to the Act:
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