IRS Issues Guidance for Reclaiming Transportation UBIT Payments
You may recall that late last year, the Nonprofit Association of Oregon (NAO) asked our members to contact Congressman Earl Blumenauer (D-OR) who sits on the House Ways and Means Committee about this unfair and unnecessary tax. In January, Committee Chair Neal (D-MA) and Oversight Subcommittee Chair Lewis (D-GA) sent a
letter to the IRS Commissioner
asking the Service to create an expedited process so nonprofits can quickly secure refunds. The
stated: “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.”
The guidance that just came out instructs eligible nonprofits to:
- Fill out an amended Form 990-Ts.
- Write at the top “Amended Return – Section 512(a)(7) Repeal.” This is so IRS officials will know what it is and what to do with it.
It is important that the IRS alerted nonprofits and their own staff to the need for speed on this.
NAO partnered with our members, other state associations and the National Council of Nonprofits to call for the repeal of this burdensome tax on nonprofits and we did it together!
In a statement to reporters, Tim Delaney of the National Council of Nonprofits wrote: “Although hard-fought to get here, this now is a beautiful thing to see: Congress – on a bipartisan basis – retroactively repealed the transportation tax, and the IRS – barely a month later – put out clear guidance to help nonprofits get their money back. For the past 21 months, charitable organizations persistently objected to the unfair diversion of dollars from missions to pay the tax. Today’s guidance is much appreciated because nonprofits need to get this money where it belongs – in local communities addressing local challenges.”