05/30/2018

ASAE Sends Fringe Benefit Comments to Treasury

The provision removes a deduction for employer-provided benefits

On May 24, the American Society of Association Executives (ASAE) delivered a letter to the Treasury Department, signed by more than 150 organizations, including the Ohio Society of Association Executives (OSAE) and many of its member organizations, urging the agency to delay implementation of a provision in the new tax law that taxes transportation and parking benefits provided by many employers.

The fringe benefits provision removes a deduction for employer-provided benefits such as transportation, parking, and on-premises athletic facilities. In meetings with Treasury officials in April, ASAE stressed that the new law disproportionately hurts tax-exempt employers by requiring them to pay a new unrelated business income tax (UBIT) on the value of these benefits. ASAE contends this is a new tax on an expenditure, not a revenue-generating activity.

“On behalf of ASAE and the undersigned organizations, we respectfully urge Treasury to delay implementation of this provision for one year to assist tax-exempt organizations struggling to determine their UBTI liability for qualified transportation fringe benefits and costs associated with any parking facility used to provide employee parking,” stated the letter.

Please select this link to read the complete article from Associations Now.