Capitol Correspondence - 01.13.20

Coalition Requests IRS Refund Nonprofits for UBIT Payments

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The UBIT Coalition, of which ANCOR is a member, sent a letter to the Internal Revenue Service (IRS) requesting “an expedited process for providing refunds” to non-profit organizations that had been subjected to changes in the unrelated business income tax (UBIT). Congress retroactively repealed these changes in December, and President Trump signed the bill into law in early January.

UBIT was a key concern for ANCOR in 2019 because changes to the tax, implemented because of the 2017 tax reform law, took scarce funds away from our non-profit members’ missions of supporting people with disabilities. The changes also had the potential to exacerbate a serious workforce crisis in disability supports by reducing the pool of funds available for workforce benefits, which in turn would make non-profit employers less competitive than other employers in recruiting and retaining staff. Lack of staff in this field ultimately affects the stability of supports on which people with disabilities rely to lead full lives in the community.

We will keep members informed of developments surrounding the request for refunds.