Churches and other historically tax-exempt organizations may need to file federal and likely state income tax returns according to a recently unearthed provision in the newly instituted Tax Cuts and Jobs Act that applies the federal income tax to parking benefits. Hundreds of organizations are now calling for its repeal.
Section 512(a) (7) addresses this new provision for tax‐exempt organizations that provide parking for their employees and will be subject to unrelated business income tax on the cost of the parking provided. A nonprofit organization that simply allows its employees to park in a parking lot or garage that is part of the organization’s facilities will be subject to a tax on the cost of the parking provided.
Click Here – To Take Action to Stop the Parking Tax
If your ministry’s name has not already been added to the position statement posted on our website, please do that today by visiting the link above. By signing on to this position statement, you will be advocating for the repeal of this new burdensome provision in the law…either by legislation or effectively by action of the Treasury Department. The position statement may be used to communicate these concerns to members of Congress and/or Treasury officials.
This is an example of how the combined impact of thousands of Christ-centered nonprofits and churches may bring change in this troubling provision in the new tax law.
A lot of people are just finding out about this and the more people find out about it, the more pressure there will be on Treasury and Congress to either delay implementation or consider changing this.
Thank you for your support.
Source – ECFA< Back
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101