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Harrisburg, PA 17110
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State College

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Erie

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Erie, PA 16506
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Lancaster

26-28 West King Street
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Lancaster, PA 17603
p: 717.232.1230
f: 717.232.8230
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Pursuing the Profession While Promoting the Public Good®

Contact Us
Pittsburgh

D.L. Clark Building
503 Martindale Street, Suite 600
Pittsburgh, PA 15212
p: 412.471.5500
f: 412.471.5508
Directions
<a href="mailto:ROgun@md-cpas.com">Email</a>

Butler

112 Hollywood Drive
Suite 204
Butler, PA 16001
p: 724.285.6800
f: 724.285.6875
Directions
<a href="mailto:ROgun@md-cpas.com">Email</a>

Harrisburg

The Quandel Building
3003 North Front Street, Suite 101
Harrisburg, PA 17110
p: 717.232.1230
f: 717.232.8230
Directions
<a href="mailto:ROgun@md-cpas.com">Email</a>

State College

243 South Allen Street
Suite 337
State College, PA 16801
p: 412.471.5500
f: 412.471.5508
Directions
<a href="mailto:ROgun@md-cpas.com">Email</a>

Erie

2216 West 50th Street
Suite 101
Erie, PA 16506
p: 814.983.0330
f: 412.471.5508
Directions
<a href="mailto:ROgun@md-cpas.com">Email</a>

Lancaster

26-28 West King Street
Suite 303
Lancaster, PA 17603
p: 717.232.1230
f: 717.232.8230
Directions
<a href="mailto:rogun@md-cpas.com">Email</a>

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Home > Industry Insights Blog > Non-Profit Tax Update

Non-Profit Tax Update


Repeal of Parking Tax

With President's Trump's signing of the federal government spending bill on December 20th, the provision that taxed exempt organizations for the allocation of certain disallowed fringe benefits (including parking) has been repealed in its entirety. The bill repeals Section 512(a)(7) of the Tax Cut and Jobs Act (TCJA). Section 512(a)(7) required non-profits that provided qualified transportation fringe benefits such as parking and transit passes to employees to pay Unrelated Business Income Tax (UBIT) on the amount by which a deduction was not allowable under Sec. 274. Repeal of the fringe benefits tax is retroactive for taxes that nonprofits have paid or accrued after December 31, 2017. Watch for an early 2020 e-mail blast for information on how best to obtain a refund if one is owed to your organization.

Modification to the Excise Tax Applicable to Private Foundations
The federal government spending bill also sets a flat rate on the excise tax applicable to the net investment income of private foundations. This change to the current two-tier excise tax structure for private foundations on their investment income under IRC Section 4940 will change Section 4940(a) by amending the current 2% rate to 1.39% and by removing Section 4940(e), which allowed for a reduced tax rate of 1% for private foundations that meet certain distribution requirements.The new flat rate will be effective for tax years beginning after December 20, 2019.