How to Claim Your Parking Tax (UBIT) Refund

February 5, 2020

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 repealed I.R.C. Section 512(a)(7), which increased unrelated business taxable income by amounts paid or incurred after December 31, 2017 for qualified transportation fringes (AKA, the “parking tax”). This means exempt organizations that reported and paid the parking tax can claim a refund.

The not-for-profit industry requested timely clarification of the process for claiming these refunds, and the IRS responded. The IRS website posting on January 21, 2020 answers the following questions: