Parking Tax Repealed
State-chartered credit unions received a welcomed gift with the signing of The Taxpayer Certainty and Disaster Tax Relief Act of 2019 (The Act). The gift relates to a repeal of a provision in the 2017 Tax Cuts and Jobs Act related to unrelated business income on transportation fringe benefits.
The Act repeals this provision retroactively to January 1, 2018, which essentially is as though the provisions in the 2017 Tax Act were never enacted. This has two benefits:
- State-chartered credit unions are no longer required to pay the tax.
- There is the opportunity to seek a refund of taxes already paid.
As of the signing of this new law, many have advocated for a streamlined process for making refund claims. Absent other guidance, it appears organizations would be required to file an amended Form 990-T to obtain a refund of previously paid amounts.
State-chartered credit unions should review their 2018 filed 990-T and determine if there are opportunities for making a claim on taxes paid related to transportation fringe benefits.
Dean has more than 25 years of experience providing audit, internal audit, and consulting services to financial services companies. He has provided consulting services in the areas of business lending, product costing and profitability, and asset/liability management. Dean has worked with a number of financial services companies on strategic issues such as board governance and enterprise risk management, as well as the role of internal audit and risk management, regulatory issues, and many accounting related topics.
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