CHA News Article

IRS Releases Draft Form 990-T for Nonprofit Organizations
Offers insight into 2019 tax changes

The Internal Revenue Service has released a draft version of Form 990-T for 2018, offering new insight into how certain portions of the Tax Cuts and Jobs Act of 2017 that impact organizations with 501(c)(3) exempt status will be implemented.

As of Jan. 1, section 512(a)(7) now treats certain employee fringe benefit expenses — including expenses related to transportation benefits — as taxable income for tax-exempt employers.

Hospitals should seek additional direction and guidance from their tax department or consultants.