In late 2018, we wrote about a new tax that churches had to pay on certain fringe benefits, including parking provided to employees. The law even impacted some churches who had reserved spots for employees in the church parking lot, subject to certain calculations. Fortunately, in December 2019 this part of the law was repealed, retroactively.
If your church filed form 990-T and paid unrelated business income taxes on the fringe benefits listed in the 2017 tax law, then you can file for a refund. The IRS requires you to file an amended tax return to obtain a refund. Per the IRS website “Attach a statement indicating the line numbers on the original return that were changed and the reason for each change (for example “repeal of Section 512(a)(7)”).”
Please keep in mind that there are deadlines for filing refund claims – three years from the time the original Form 990-T was filed or two years from the time the tax was paid, whichever is later.
If you need assistance with filing for a refund, please contact us.