Statement on IRS Guidance for nonprofits to claim refunds for transportation UBI taxes paid

Statement on IRS Guidance for nonprofits to claim refunds for transportation UBI taxes paid

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Tim Delaney, President and CEO of the National Council of Nonprofits, said the following in response to the IRS releasing guidance that will help nonprofits quickly get refunds of taxes they paid on the now-repealed tax on nonprofit transportation benefits: How To Claim a Refund or Credit of Unrelated Business Income Tax (UBIT) or adjust Form 990-T for Qualified Transportation Fringe Amounts.

“Although hard-fought to get here, this now is a beautiful thing to see: Congress – on a bipartisan basis – retroactively repealed the transportation tax, and the IRS – barely a month later – put out clear guidance to help nonprofits get their money back. For the past 21 months, charitable organizations persistently objected to the unfair diversion of dollars from missions to pay the tax. Today’s guidance is much appreciated because nonprofits need to get this money where it belongs – in local communities addressing local challenges.

“We expressly thank Senators Lankford (R-OK) and Coons (D-DE) for making this a high-profile, bipartisan issue. Additional bills to repeal this tax, introduced by House Majority Whip Clyburn (D-SC), and by Representatives Walker (R-NC) and Suozzi (D-NY), showed the breadth of opposition to the tax and the widespread support for the work of charitable organizations. Further, today’s guidance is in direct response to the leadership of House Ways and Means Committee Chair Neal (D-MA) and Oversight Subcommittee Chair Lewis (D-GA). The nonprofit community is well served by these and many other public servants who are committed to solving problems rather than seeking political gain.”

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The National Council of Nonprofits (Council of Nonprofits) is the nation’s leading resource and advocate for America’s charitable nonprofits. Through our powerful network of state associations and 25,000-plus members—the nation’s largest network of nonprofits—we serve as a central coordinator and mobilizer to help nonprofits achieve greater collective impact in local communities across the country. We identify emerging trends, share proven practices, and promote solutions that benefit charitable nonprofits and the communities they serve. Learn more at www.councilofnonprofits.org.

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