Retroactive Repeal of Unrelated Business Taxable Income – Qualified Transportation Fringe Benefits aka “parking lot tax”

2020-02-04

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 retroactively repealed Internal Revenue Code (IRC) Section 512(a)(7), which increased unrelated business taxable income by amounts paid or incurred for qualified transportation fringes. Congress had previously enacted this provision as part of the Tax Cuts and Jobs Act, effective for amounts paid or incurred after December 31, 2017.

If you wish to claim a refund or credit of the UBIT reported on your Form 990-T for 2017 or 2018 under Section 512(a)(7), you may do so by filing an amended 
Form 990-T as described in the form’s instructions. 

More information on this process is available on IRS.gov.