Nonprofits May Face Costly Hurdles To Get Fringe Benefit Refunds

Nonprofits May Face Costly Hurdles To Get Fringe Benefit Refunds

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That might not seem like much, but David Thompson, vice president of public policy for the National Council of Nonprofits, said 92% of all nonprofits have revenues of less than $1 million. Getting thousands of dollars back from the refunds is a significant amount of money, he said.

Nonprofits could file for refunds before the guidance came out if they had someone to tell to file the needed form, and big organizations like universities and hospital systems likely were already filing amended returns, he said. However, small organizations were likely waiting for the IRS to act, he said.

Most nonprofits “have to ask their pro bono accountant or they have to ask a board member who is also an accountant to do it for them to get back that $1,000 or the $10,000 or something along those lines,” he said.

Those exempt organizations with both transportation unrelated business taxable income and UBTI in other areas will face added complexity when filing amended returns, Thompson said. Ultimately, though, while there may be questions about timing, most organizations will get refunds from the federal government, he said.

However, he said there were concerns about what could happen at the state level.

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