The IRS has released an updated stance on the new changes to the tax law that will affect non-profits this tax year. “Fringe-benefits”, which include perks such as free parking and fare for public transportation, will see a 21% tax for these benefits in the new tax season compared to being tax-free in prior years.
The IRS will be giving some leeway for non-profits in the event that there is some confusion on how much tax the non-profit should be paying and will not face penalties in regards to the new tax on fringe benefits.
Discussions on whether to postpone or repeal this provision has been discussed and may be part of a year-end revision to the new tax law. House Ways and Means Chairman, Kevin Brady, has been in favor of the removal of this tax and local senator in Delaware, Chris Coons, has asked the Treasury Department to postpone the provision until next tax year.
For more info, please visit https://www.accountingtoday.com/articles/irs-softens-blow-after-tax-law-cut-nonprofit-employee-perks.