AAFCPAs has sent a letter to Congressman Richard Neal (D-Mass.), Chair of the tax-writing Ways and Means Committee, asking him to lend his support to nonprofits by helping to repeal Internal Revenue Code Section 512(a)(7). Section 512(a)(7) of the new tax code requires nonprofits to now pay a burdensome tax on parking and transportation fringe benefits provided to employees.
AAFCPAs has followed this legislation closely and witnessed first-hand the monumental impact this new tax has had on our regional, multi-state, national, and international nonprofit clients.
“Organizations are tax-exempt for a reason: to optimize their abilities to benefit society and provide services that the government might otherwise be required to offer,” wrote Carla McCall & David McManus, AAFCPAs Co-Managing Partners. “This tax is counterproductive and affects the viability and effectiveness of these nonprofit organizations.”
In an illustrated example, AAFCPAs explains the impact in detail on these already resource-constrained organizations. AAFCPAs emphasized the urgent need for Congress to act immediately to repeal the tax.
If you have questions, please contact our Co-Managing Partners Carla McCall, CPA, CGMA at 774.512.4049, firstname.lastname@example.org; Dave McManus, CPA, CGMA at 774.512.4014, email@example.com; or your AAFCPAs Partner.