On Friday, December 20, 2019, the “Further Consolidated Appropriations Act, 2020” (FCAA) was signed into law by President Trump. In addition to containing a number of necessary spending provisions to keep the federal government from shutting down, the FCAA contains eight bills including the extension of expiring health programs and tax provisions.
Following are some of the FCAA’s most notable provisions:
- Full repeal of the medical device tax, the health insurance tax, and the excise tax on high cost employer-sponsored health coverage (“Cadillac” plans);
- One-year extension of more than 30 expired or expiring tax provisions for individuals and businesses;
Enhanced retirement security with major changes for 401(k) plans, IRAs and a newly created pooled multiple-employer plan;
- Repeal of the unrelated business income from qualified transportation fringe benefits commonly known as the “parking tax.” The repeal is retroactive to the original date of enactment, i.e. amounts paid after December 31, 2017. It appears that organizations that have previously filed a Form 990-T to report this income will be able to claim refunds of the tax paid. We are currently awaiting additional information from the Internal Revenue Service regarding the refund process.
We will send more details as further guidance becomes available.
Legacy News Flash 20-1