News Rep. Richard Neal calls on IRS to promptly issue refund guidance on UBIT

Ways and Means Committee Chairman Richard E. Neal (D-MA)  has called for the Internal Revenue Service (IRS) to provide refund guidance to tax-exempt organizations that paid a 21 percent unrelated business income tax (UBIT) on parking and transportation benefits provided to employees.

In December, Congress retroactively repealed the portion of the 2017 tax law that unfairly inflicted the UBIT on tax-exempt organizations.

“Charities and houses of worship wasted precious time, money, and energy contending with a damaging tax that the 2017 Republican law imposed on them. It is unconscionable that the GOP gave big corporations and the wealthiest Americans more than $2 trillion of tax cuts, but forced soup kitchens to pay taxes on their employees’ parking benefits. That policy undermined any semblance of a fair or just tax code. Congress did our part to right this wrong – now it is time for the IRS to provide tax-exempt organizations with the guidance they need to claim and receive the refunds they are due,” said Neal in a statement, along with Ways and Means Oversight Subcommittee Chairman John Lewis of Georgia.

Read the letter Neal and Lewis sent to IRS Commissioner Charles Rettig. 

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