Reduce Unrelated Business Taxable Income on Reserved Employee Parking

IRS-issued Notice 2018-99 allows employers with reserved employee parking spots to potentially reduce unrelated business taxable income (UBTI)—but only if they act soon.

Until March 31, 2019, qualifying employers with reserved employee parking spots may change their parking arrangements. They can revise signage and access to decrease or eliminate reserved employee parking spots and instead treat those spots as unreserved employee spots retroactive to January 1, 2018. 

Depending on the employer’s circumstances, this could have a significant impact on cost that must be treated as taxable income beginning January 1, 2018.

Background

The IRS issued Notices 2018-99 and 2018-100 (the Notices) to provide interim guidance related to the new source of UBTI from qualified transportation fringe benefits.  

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For more information about how the Notices could affect you or your organization, see our article or contact your Moss Adams professional. You can also visit our dedicated tax reform page to learn more.

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Related Topics

Qualified Transportation Fringe Guidance
Certain Fringe Benefits Provided by Not-for-Profits May Be Considered Taxable Income
IRS Notice Provides Guidance on New Unrelated Business Income Code Section and Requests Feedback

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