UBIT Rules and New Requirements
Thanks to advocacy by the League and our member orchestras, in partnership with the broader nonprofit sector, the FY20 spending and tax package signed into law on December 20, 2019 retroactively repealed the UBIT on parking and commuting benefits. This means that orchestras that have paid the tax are eligible for a refund.
On January 22, 2020 the Internal Revenue Service (IRS) issued guidance to instruct nonprofits on how to seek a refund for taxes paid on parking and commuting benefits.
How To Claim a Refund or Credit of Unrelated Business Income Tax (UBIT) or adjust Form 990-T for Qualified Transportation Fringe Amounts
The guidance follows a January 8 letter (PDF) to the IRS Commissioner from House Ways and Means Committee Chair Neal (D-MA) and Oversight Subcommittee Chair Lewis (D-GA), calling on the IRS to rapidly implement the refund process.
The League has been a leading voice (PDF) in Washington, rallying orchestra advocates from coast to coast, raising awareness on Capitol Hill, and partnering with nonprofits across the sector to make the case for removing this harmful tax. Please inform the League’s Washington, D.C. office of any concerns related to the refund process.
Urgent concerns about new UBIT rules
IRS issues limited guidance amidst calls for delayed implementation
Congress considers repeal
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