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Interesting point. So if the church is going to be forced to file UBIT anyhow, they may as well start charging those non-member commuters for parking as a means of offsetting the cost of paying the tax.

I merged the two topics and modified the title to be more descriptive. I'm also going to post a link to this topic in the pinned post on the TCJA that appears at the top of Gen'l Chat.

BAH and BAS are not reported on the W-2 at all. They are not subject to FICA and Medicare. That is not the difference. If you want to know the reason there is a difference, ask to see the 12/31 LES (leave and earnings statement). That will show all of the various sources of pay and you can see what is included in taxable wages and what is not. You will see that there is one of the types of compensation I described above: bonus, flight pay, medical differential etc.

Commuters who aren't church members often park in church parking spaces and ride the bus to work.

All of the employees of my non-profits and churches walk to work. Problem solved. Utterly stupid rule that will not likely see the light of day. But then, I have seen stranger things happen.

Recently I've been seeing lots of heat generated by the new tax on parking privileges for employees of churches and non-profit organizations. Just curious if others on this forum have an opinion on it. As I understand it, this tax will apply to all churches and non-profit organizations. It essentially assigns a value to the right to park on premises, even if the parking was free to begin with. Then the organization pays a tax of around 21% on the value of that perk. Can that possibly be the correct interpretation? That in no way levels any sort of playing field, because it doesn't apply to businesses who provide on-site parking to their employees. The provision seems to patently stupid to begin with, I'm surprised that even a politician could think it's a good idea. But maybe I'm the one missing the point.

And... If he owes tax in any of those prior years, he is liable for paying them. Oldest first. I always recommend mailing the oldest first, then wait 2-3 weeks and mail the next one. Prevents confusion at the IRS.

Start with 2008 first, as there may be carryover issues that go forward. Realize that refunds owed for past 3 years are forfeited.

One of our own topics that discusses the new taxes for non profits and churches on fringe benefits:

I only have one non-profit and they don't even have a parking lot. It's a pool that only has street parking. I don't know how they could charge people for parking in the street. What a bunch of morons!

Whereas I believe the govt is discriminating against states with high taxes, I really like the "cause and effect" argument posed by SaraEA. The harm HAS COME from the state governments themselves. The federal tax law is simply picking and choosing which states to subsidize. Over the weekend I listened to a radio show featuring an EA who had attended the IRS blowout in Las Vegas. [Funny how they dislike business travel deductions to tourist resorts such as Myrtle Beach, Orlando, Niagara Falls, etc. when it comes to themselves they really love to go to Vegas] Apparently there has been a lot of noise from constituents getting hit hard because of job expenses and the loss of the 2% category, and the general feeling is further tax relief is to come for this group. Every group of "lobbyists who come out in force" to champion a favorite deduction also increases the deficit.

True, BAH isn't taxable, so this doesn't explain why box 1 is higher than the FICA and Medicare wages.

Funny how NY also is fighting for this deduction but they don't give it themselves to NY residents. NYers can't deduct any state taxes or property taxes on their NY return.