Section 13304 of ‘Tax Cuts and Jobs Act’ (P.L 115-97) requires employers to add all costs associated with parking and commuter benefits to its tax liability. The IRS has released guidanceand request for comments on how employers are to calculate additional tax liability as a result of parking they provide. This guidance establishes a ‘primary use’ test which creates a disadvantage for small businesses.
Under the proposed guidance, a number of changes need to be made in order to ensure that new parking taxes are applied equally, specifically:
- giving relief to non-profit organizations
- making sure that employers are not provided loopholes to purposely cheat the system (i.e. requiring actual counts rather than guestimates)
- removing empty parking spaces from the equation employes use
- providing employers and developers with a clearer understanding of how to deal with parking when it is bundled into a lease.
This is not the intent of the language and through this policy, the IRS creates unauthorized policies that will burden small businesses.
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Congressman Blumenauer is sending a letter to the IRS and we need your help to get other Members of Congress to sign. Use the link below to ask your Congressman to tell IRS to ‘Tax Parking Fairly’
