Bradley attorney Bruce Ely was quoted in Yellowhammer News on a provision in a popular Republican tax bill that has non-profits, particularly churches, concerned that they might have to begin filing income tax returns for the first time.
Ely said several churches have called him with concerns.
“If you’re parking downtown and the church or YMCA is covering your parking fee, that is probably what is taxable,” Ely explained.
Ely said it could also mean that a church must pay taxes on the parking spots it offers its staff.
If the provision were to be enforced as such, Ely said organizations and churches would have to start filing tax returns, and most churches have never had to do that.
“Most churches I know have never filed an income tax in their history,” Ely said. “Some of these churches are 150, 200 years old, and they’ve never had to file an income tax return.”
Ely said he doesn’t expect the IRS will enforce the provision as strictly as mentioned, but that remains unclear until guidance is issued.
The complete article, “Non-profits may have to start paying taxes, and churches in Alabama are worried,” appeared in Yellowhammer News on August 3, 2018.