fbpx

< Back to Thought Leadership

Exempt Organization Highlights of Spending Package’s Tax Law Changes

While the Further Consolidated Appropriations Act, 2020 (Act) brought about extensions for certain credits and deductions, it also brought the following two changes for exempt organizations:

Parking Tax Retroactively Repealed

The Parking Tax imposed under Internal Revenue Code Section 512(a)(7) has now been retroactively repealed.  Exempt organizations will no longer owe this tax and are entitled to refunds for amounts reported and paid on Forms 990-T in the past.  The IRS is to issue guidance on the process for obtaining these refunds, but this will most likely consist of filing amended Form 990-Ts.

Private Foundation Excise Tax

The Act also established a flat tax rate for private foundation’s excise tax on net investment income at 1.39%, versus the two rate option allowed previously (1% vs. 2%).  The new rate is effective for tax years beginning after December 20, 2019.

Learn More

This is just a brief overview of the most relevant provisions for exempt organizations. More details on the other items in this Act can be found in our announcement: Spending Bill Extends Tax Breaks & Adds Retirement Account Provisions.

If you would like to discuss further, please contact your local Blue & Co. advisor.

Upcoming Hospital 340B Program Recertification Window

Upcoming Hospital 340B Program Recertification Window

The Health Resources and Services Administration (HRSA) has set the annual recertification period for the 340B Drug Pricing Program for hospitals to begin on August 11, 2025, and end on […]

Learn More
What’s the Difference? Actual Home office expenses vs. the simplified method

What’s the Difference? Actual Home Office Expenses vs. the Simplified Method

Small business owners who work from home could save money on their taxes by taking the home office deduction, as long as they meet the requirements set forth by the […]

Learn More
The Healthcare Roadmap to Success with Network Integrity | Part Four of a Four Part Series | Text overlay on a photo of a hospital.

The Healthcare Roadmap to Success with Network Integrity

In the ever-evolving healthcare landscape, prioritizing initiatives to improve margins is essential for maintaining financial stability. In our previous video and article, we discussed how a healthcare system on the […]

Learn More