Nonprofits – Claim Your UBIT Refund or Credit

nonprofit-taxes_LI-532x266 Nonprofits - Claim Your UBIT Refund or Credit
Photo: Charles Thompson

According to the IRS, “The Taxpayer Certainty and Disaster Tax Relief Act of 2019 retroactively repealed Internal Revenue Code (IRC) Section 512(a)(7), which increased unrelated business taxable income (UBIT) by amounts paid or incurred for qualified transportation fringes.”

What does that mean for nonprofit?

If you had transportation expenses in 2017 or 2018 that you were unable to claim, you may be able to recoup that expense now.

You may claim a UBIT refund or credit reported on your 990-T form in 2017 or 2018, by filing an amended Form 990-T.

The process is described here.

Note: There is a time limit for which this may be claimed that is between two or three years depending upon the specific circumstances listed here.

If you need help requesting a refund, please give me a call.