The IRS recently released two notices to provide guidance for tax-exempt organizations about how to comply with the new provision that they treat employer-provided parking and qualified transportation fringe benefits as unrelated business taxable income (“UBTI”).
This unprecedented treatment of expenses as income created substantial uncertainty about how to calculate the UBTI from the parking benefits and how to address the passing of estimated tax payment deadlines.
Notice 2018-99 provides guidance on calculating UBTI from employer-provided parking and other qualified transportation fringe benefits. Notice 2018-100 waives the addition to tax for the underpayment of 2018 estimated income tax, to the extent an underpayment is from UBTI arising from employer-provided parking and other qualified transportation fringe benefits.
Please click here for our analysis of these IRS notices.