This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 30216, Allowance for Miscellaneous Expenses, including: If an employee elects the standard allowance rather than itemizing miscellaneous expenses, the IRS will reimburse the following amount without support or documentation: $650 or the equivalent of one weeks basic gross pay, whichever is the lesser of the amount, for employees relocating without an immediate family; $1,300 or the equivalent of two weeks basic gross pay, whichever is the lesser of the amount, for employees relocating with an immediate family member. The rules governing the IRS ability to pay for relocation expenses for new and current employees are as follows: The employee is transferring from one duty station to another for permanent duty and the new duty station is at least 50 miles from the old duty station. M&IE for the day(s) away from the new station are not reimbursable. Box 9002 The carrier is required to acknowledge all claims within 10 calendar days after receipt of a properly completed form. The basic relocation allowances program must be authorized on relocation authorization for basic moving expenses and approved by the business unit head of office or their designee as defined in Delegation Order 1-3, Authorization of Employee Relocation Allowances and Approval of Relocation Reimbursements. The brokers fees or advertising charges are not in excess of those customarily charged for comparable services in that locality. It's designed to ensure your move isn't just a way to ease your daily commute to work. Per diem for en route travel ends, whether the arrival is prior to or subsequent to the date on the approved relocation authorization. The Basic Relocation Allowances Program also includes discretionary allowances as prescribed by the FTR: Temporary Quarters Subsistence Expenses (TQSE) for up to 60 days, Extension of temporary quarters for an additional 60 days not to exceed a total of 120 days, Shipment of a POV to a foreign or non-foreign OCONUS location, Extension of temporary storage of household goods within CONUS up to an additional 90 days not to exceed a maximum of 150 days and whenever there is an OCONUS origin or destination up to an additional 90 days not to exceed a maximum of 180 days. Employees are required to use their government travel card for themselves and authorized family members, househunting trip and en route travel in accordance with the rules governing the mandatory use of the government travel card. Employees will be penalized if they separate from the government before completing the service agreement, unless the IRS Commissioner determines that the reasons for the separation were beyond the employee's control and are acceptable to the IRS. Hiring a pro to mow and trim a lawn costs an average of about $135, or between $50 and $220, depending on your yard's size. The IRS pays the total charges and will bill employees for the cost of transportation and other charges applicable to any excess weight. A RITA voucher reconciliation of the withholding tax allowance paid and the employees income tax bracket results in a negative payment to the employee. If the transfer is cancelled, postponed or the service agreement is violated, the advanced amount must be returned immediately. If the employee extends their two-year period, they must sign the tour renewal portion of the form in order to continue to receive allowances until they return to their U.S. post of assignment. Per diem only for the employee en route travel, 3. If the employee travels by any other mode, the IRS will pay the employees transportation expenses, not to exceed the cost of transportation expenses by the authorized mode. Use of the government travel card for TQ is not mandatory. The employee must include a Debt Collection Repayment memo with their payment. The request must include: The origin and destination of their planned move, A copy of their eligibility letter for SES separation retirement last move home benefits. When there is a discrepancy between the employee's claimed amount for reimbursement and what the IRS considers reasonable and the amounts claimed are higher than the normal charge for similar services in the locality, the IRS will consider the costs to be excessive and will disallow them. If the employee needs to repay a debt related to their relocation, the employee must submit payment for the advance payable to the IRS to: Paying all charges and fees associated with the government travel card by the due date on the invoice. The WTA also reimburses the employee the federal tax withholdings on the WTA itself, since the WTA is also considered income to the employee. The distance test is met when the new official station is at least 50 miles further from the employees current residence than the old official station is from the same residence. The IRS will not reimburse employees for expenses for local transportation expenses at the new post of duty as these are considered commuting cost and not reimbursable relocation expenses. The biggest moving hurdle, practically and tax-wise, is the 50-mile distance test. 3. Employees may be entitled to the following under the DSSR (Government Civilians-Foreign Areas), which is available from the Superintendent of Documents, Washington, DC 20402: 2. Transportation and temporary storage of household goods except if a government bill of lading is used, 1. Relocation for current employees is allowable in situations where the employee is reassigned and the relocation is in the best interest of the institution. To request reimbursement for residence sale and purchase expenses the employee incur for residence transaction, the employee send the claim for reimbursement and documentation of expenses to the approving official for review and approval. When the technician processes a voucher and the reimbursement is subject to federal tax, the technician applies an estimated partial payment of the RITA as an offset to the federal tax withholdings. The one-year limit may be extended for an additional year by the employee through their appropriate business unit approving official. The item is shipped less than 150 miles. Family members are not covered under the government rental car agreement, therefore, they are considered unauthorized drivers/passengers, and will not be insured by the government. The approving official may authorize the use of more than one POV if the employee meets one of the following circumstances: One POV cannot reasonably transport the entire family together with luggage. Taxable moving expenses are paid as pay supplements and are subject to FICA, federal, and state taxes. Expenses for rental cars may be authorized; however, the rental car cannot be used for personal travel and the approving official may impose limitations on the total mileage reimbursed. 1. Overseas tour renewal travel is reimbursement for the employee and their immediate family of round trip travel and transportation expenses between the overseas post of duty and the employee actual place of residence in the U.S. Employees and their immediate family members are entitled to overseas tour renewal travel expenses that may include rest and recuperation travel or home leave travel. The technician calculates the withholding taxes on relocation vouchers to determine the amount that is subject to income tax after reviewing the voucher(s) and determining the amount of reimbursement due to the employee. To receive a relocation advance employees must have: An approved Relocation Authorization for Basic Moving Expenses, An approved Form 4253-C, Relocation Travel Advance Request. That means the previous IRS distance test or "50 mile rule" and time test of 39 weeks in 12 months, are now moot. An employees request for relief of the service agreement for failing to effect the transfer is denied and must be collected. In accordance with 5 USC 5707 (c), Regulations and Reports, all agencies that spend more than $5 million on travel and relocation must provide an annual report to GSA by November 30. Travel Policy and Review is responsible for: Reviewing requests for basic plus allowances and coordinating the requests to Travel Management for further elevation to the Associate CFO for Financial Management for a decision. Employees and their immediate family members may incur expenses after the signed document has been forwarded to the employee. They must contact their CFO relocation coordinator for assistance. 1. Such expenses cannot be avoided by sublease or other arrangement. This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-10, Allowances for Transportation of Mobile Homes and Boats Used as a Primary Residence, including: In lieu of transportation of household goods at government expense, employees may be entitled to an allowance for transportation of their mobile home or houseboat within CONUS, Alaska and through Canada en route between Alaska and CONUS. (5) IRM 1.32.12.4.4(2)(Table G), Senior Executive Service (SES) Separation for Retirement Last Move Home, Added that for eligible SES career appointees performing a Last Move Home (LMH) and meet the conditions for a separation retirement, IRS must pay or reimburse RITA. Travel Policy and Review will provide the approval or disapproval request to the business unit and the CFO relocation coordinator electronically via email. The tax withholdings and reimbursements of moving expenses have an effect on the employees final tax liability. Employees in training at Federal Law Enforcement Training Center (FLETC) will receive initial temporary storage not to exceed 180 days due to the length of the training class. Note: FTR 302-2.6 includes additional conditions for short distance moves that include either: a) the one way commuting pattern between the old and new official station increases by at least 10 miles, but no more than 50 miles; Non-foreign area --The states of Alaska and Hawaii, an area that includes, the Commonwealths of Puerto Rico and the Northern Mariana Islands, Guam, the United States (U.S.) Virgin Islands and the territories and possessions of the United States (excludes the former Trust Territories of the Pacific Islands, which are considered foreign areas for the purposes of the FTR). Employees who are marketing their home independently must include the following clause in the listing agreement or as an attachment to the listing agreement. Employees may not ship or store a trailer, airplane or any vehicle intended for commercial use. This guide applies to all employees authorized by the IRS to relocate to a new official station in the interest of the government. For each member of the immediate family, multiply the same number of days by .25 times the same per diem rate, as described in paragraph (a) of this section. Each travel card reflects an individual account established in the travel cardholder's name. The RITA is paid in two parts: Through the payment of a withholding tax allowance (WTA) at the time vouchers are paid. Email -*CFO.BFC.Relocation@irs.gov The technician emails the RITA package which includes the instructions along with the necessary forms for filing a RITA claim. The maximum calculation is based on the standard CONUS rate and is reduced after the first 30 days of the TQ period. An official station at an isolated location is a place of permanent duty assignment in CONUS at which the employee has no alternative except to live where the employee is unable to use their household goods. For example, if you moved a distance of 1,485 miles with 10,000 pounds of household goods, you would multiply . The employee has the right to dispute a debt or request a waiver if they have documentation or additional information to support their request. Assisting employees with completing cost comparisons for shipping a POV. Extensions may be authorized by the approving official for subsequent service or tours of duty at the same or other overseas stations if: Expenses for the use of a taxi are limited to transportation to airports, or other carrier terminals, and places of lodging and may not be used to seek permanent residence. An official website of the United States Government. Ensuring criteria is met for basic plus allowances and forwarding the requests to the Associate CFO for Financial Management for decision. Information regarding a hardship relocation program can be found on the relocation guidance website, or by contacting the designated points of contact in the business unit. 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021 and 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021. (8) IRM 1.32.12.7(24), Allowance for Temporary Quarters (TQ) Subsistence Expenses, Added paragraph to explain lump sum Temporary Quarters Subsistence Expense (TQSE) payments. Employees are allowed per diem for a round trip between the new and old stations to handle personal matters related to the transfer or to complete unfinished work. Shipment of a POV from OCONUS requires approval by the approving official if the POV was not previously shipped to that OCONUS location, 2. If the TQ become the employees permanent residence, the IRS will consider the following factors to determine if reimbursement of TQ may be allowed: Employees cannot claim expenses for a rental vehicle while in TQ. The WTA could exceed the RITA where the marginal tax rate is less than the supplemental wage withholding. We will be selling in March and moving right after that. Retaining copies of all relocation documents associated with the relocation. The amount cannot exceed the maximum rate of a grade GS-13 biweekly pay for the locality area of the new official station. Processing third-party payments for use of the relocation services contract for home sale and property management services. But if you prefer, you can keep up with your actual transportation costs and deduct those instead. Coordinating a report date with the gaining office approving official. What Are Examples of Types of Costs Not Covered by the Miscellaneous Expense Allowance (MEA)? (See IRM 1.32.13, Relocation Services Program for additional information on marketing requirements and use of the Relocation Services Program). The technician prepares a Form W-2, Wage and Tax Statement, for each employee to whom payments were made for moving expenses no later than January 31 of each year. Contact the CFO relocation coordinator for assistance. For 2022, the business mileage rate is 58.5 cents per mile; medical and moving expenses driving is 18 cents per mile; and charitable driving is 14 cents per mile, the same as last year. Foreign area (see also non-foreign area)-- An area that includes the Trust Territories of the Pacific Islands situated both outside the continental United States (OCONUS) and the non-foreign areas. The TQ period started June 1, for the employee and their immediate family. The move must be made within one year of employment. Any amount claimed must be reasonable and in proportion to the length of time employees occupy TQ. Foreign Affairs Manual: United States (U.S.) Department of State, for additional information on foreign and non-foreign OCONUS relocation, Foreign Affairs Handbook - U.S. Department of State, for additional information on foreign and non-foreign OCONUS relocation. All aspects of the relocation must be completed within one year from the report date of the transfer or appointment, including settlement of real estate transactions. Employees must submit copies of all grocery receipts and any other reimbursable expenses, such as, an individual meal or dry cleaning that is $75 and over. The maximum period of time for TQ occupation is 120 days. Ensuring employees do not use excessive administrative leave for relocation travel and review any hours greater than 200. For example, in remote areas or when conventional facilities are in short supply, because of an influx of attendees at a special event, such as the Worlds Fair or international sporting event. Non-temporary storage of household goods, 6. The employees should contact the CFO relocation coordinator for assistance when requesting UAB allowance. Box 9002 Shipment of POV from OCONUS if employee was previously authorized a shipment of POV to that OCONUS location, 7. Any additional days of temporary quarters. Employees must submit the following forms for reimbursement of any real estate transactions: Form 4527, Employee Application for Reimbursement of Expense Incurred Upon Sale and/or Purchase of Residence, along with any receipts and documents pertaining to the sale or purchase of real estate, Receipts for allowable expenses paid outside of closing. Reviewing Form 8518, Request for the Use of the Relocation Services Contract. The IRS assumes responsibility for awarding the contract and paying the carrier transporting household goods, PBP&E and temporary storage using an IRBL. There are debris pick up charges, if requested, within 30 days of delivery. The Associate CFO for Financial Management is responsible for: Establishing and maintaining policies and controls to ensure compliance on the relocation program for internal accounting operations and financial reporting. Approving requests for basic plus allowances for shipment of privately-owned vehicles (POV) within the Continental United States (CONUS) and use of the Relocation Services Program. The nature of the assignment may not be related to the new position. Check the GSA website for the most recent mileage rates when relocation travel is performed by POV. Employees calculate the maximum reimbursement allowed under the actual TQSE method by multiplying the number of days in a period (normally 30) that they incur TQSE by the applicable per diem rate for the employee and each family member based on the following chart: *Unaccompanied spouse or domestic partner occupies TQ in a location separate from the employee.
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