Early Christmas Gift? Repeal of the Parking Lot Tax Pending
SEC. 302. REPEAL OF INCREASE IN UNRELATED BUSINESS
TAXABLE INCOME FOR CERTAIN FRINGE
(a) IN GENERAL.—Section 512(a) is amended by
striking paragraph (7).
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect as if included in the amend-
ments made by section 13703 of Public Law 115–97.*
The effective date of the provision relates back to the original enactment of section 512(a)(7), effectively making the repeal retroactive to the date of enactment. This repeal does not impact the disallowance of taxable employer deductions for qualified transportation fringe benefits.
The bill now goes to the Senate, where passage is expected. In addition, President Trump is expected to sign the bill once it is passed by both legislative chambers.
What should your organization do?
If the bill is passed, organizations that paid tax on disallowed fringe benefits (e.g., employer-provided parking tax benefits) may file an amended return seeking a refund of the tax paid.
Please contact us at [email protected] with any questions.
*Public Law 115–97 is the Tax Cuts and Jobs Act signed into law by President Trump on December 22, 2017.Sign up for e-news and alerts