News Council, MNN urge repeal of federal nonprofit transportation tax

The Providers’ Council and Massachusetts Nonprofit Network have sent a joint letter to Congressman Richard Neal (D-Mass.), Chair of the Joint Committee on Taxation, urging the immediate repeal of the new income tax on expenses incurred by nonprofits for providing employee transportation benefits, such as parking and transit passes.

The new tax – officially Internal Revenue Code Section 512(a)(7) – is a part of the sweeping tax code reform passed in 2017 and the first payments will be due in a matter of weeks. The letter, signed by Council President and CEO Michael Weekes and MNN President and CEO Jim Klocke, underscores the urgent need for Congressional action to repeal the tax immediately.

It reads in part: “This new tax is forcing hundreds of thousands charitable nonprofits, community-based human services providers, houses of worship, foundations and other nonprofits to conduct extensive and costly assessments of their expenses related to parking, subway cards and bus passes to determine whether and how much in tax payments they must submit to the IRS. … There is strong bipartisan support for eliminating this unfair tax on organizations dedicated to addressing problems in communities throughout the United States.”

You can read the complete letter here. If you have questions about this issue, please contact Bill Yelenak by email at bill@providers.org or call 617.428.3637 x122.

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