Lankford Introduces Senate Bill to LIFT 'a Huge Burden to Churches, Charities'

Sen. James Lankford (R-OK) introduced a bill in the US Senate Wednesday that would protect churches, charities, and other non-profit organizations from a provision in the new tax law that would tax some employee benefits for the first time.

The Lessening Impediments from Taxes (LIFT) for Charities Act, would repeal a section in the tax code that would require some tax-exempt organizations to pay federal taxes on employee benefits, like parking, meals, or transportation benefits.

"Tax reform was designed to simplify tax filing, not make it more complicated or burdensome," Lankford said in a press release. "By definition, tax-exempt organizations do not typically file tax returns. But, a glitch in last year's tax reform bill would become a huge burden to churches, charities, and non-profit organizations."

"Most churches and non-profits in Oklahoma, especially in rural locations, are not equipped to handle major tax code changes," the press release continued. "Non-profit, tax-exempt entities are designed to better our communities and our nation."

The LIFT for Charities Act was introduced by US Rep. Mark Walker (R-NC) last week in the House of Representatives.

Currently, the law requires churches and other organizations to pay new taxes and subjects them to new compliance burdens and reporting requirements. Many, if not most churches have never had to fill out IRS Form 990's.  

Lankford and Walker serve as co-chairs of the Congressional Prayer Caucus.