irs relocation guidelines 50 miles

IRS Information About Employee Moving Expenses Preparing relocation authorizations for basic moving expenses and relocation authorization amendments for basic plus moving expenses for approval, if applicable. Items purchased as groceries must be used or consumed while occupying TQ. When an employee does not file a claim, the IRS assumes that the RITA amount is zero. Providing employees with a signed relocation authorization for basic moving expenses and relocation authorization amendment for basic plus moving expenses if necessary. All requests for shipment of POV within CONUS must be approved by the Associate CFO for Financial Management. Business units must submit a request to Travel Policy and Review when the travel and transportation expenses and applicable allowances in connection with the employee's transfer from their residence involves a distance of less than 50 miles within the same general local or metropolitan area. Through the payment of the final RITA in the following calendar year. There are additional charges incurred for shipments originating and/or terminating at locations other than the authorized points of origin and destination. Under the Basic Plus Relocation Allowances Program, the IRS may pay the following additional relocation allowances: Employees must receive authorization for basic relocation allowances on, Relocation Authorization for Basic Moving Expenses, before requesting the basic plus relocation allowances on Relocation Authorization Amendment for Basic Plus Moving Expenses. Employees are responsible for any additional cost if they have their household goods transported and/or stored and the combined weight exceeds the 18,000 pounds net weight (20,000 pounds including packing materials) limitation. The maximum weight allowance of household goods that may be shipped and/or stored at government expense is 18,000 pounds net weight. For the lump sum TQSE payment method, the employee is paid a lump sum for each authorized day up to 30 days. The business units must submit the request for basic plus relocation allowances to Travel Policy & Review, *CFO Relocation Basic Plus Requests@irs.gov mailbox for review. See IRM 1.32.11, IRS City-to-City Travel Guide, for information and entitlements while on temporary duty travel. The amount cannot exceed the maximum rate of a grade GS-13 biweekly pay for the locality area of the new official station. (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. All reimbursable expenses for short distance moves are taxable income and cannot be waived. Use of the relocation services contract to sell residence after approval by the Associate CFO for Financial Management. Temporary Quarters Subsistence Allowance (TQSA) -- The Temporary Quarters Subsistence Allowance (TQSA) is an allowance provided to assist with temporary lodging, meals, laundry and dry cleaning while occupying temporary quarters at a new post and permanent residence is not yet available, or when an employee is getting ready to depart post of duty permanently and must vacate residence. The taxable reimbursements are considered income to the employee and the additional income may place the employee into a higher tax bracket. 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. Validating and entering information in the relocation system. Employees should consider the following to determine their maximum authorized TQSE allowance: Expenses for actual subsistence that are directly related to the occupancy of the TQ. Federal Insurance Contributions Act (FICA) Tax -- A payroll tax or employment tax imposed by the federal government on both employees and employers to fund Social Security and Medicare. 4. This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-9, Allowances for Transportation and Emergency or Temporary Storage of a Privately Owned Vehicle, including: Transportation of a POV to a OCONUS post of duty, Return transportation of a POV from a OCONUS post of duty. 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 RITA is paid in two parts: Through the payment of a withholding tax allowance (WTA) at the time vouchers are paid. Mileage reimbursement is normally calculated on a per-mile basis and covers all expenses of owning and running your vehicle for business purposes. 5. What Are Examples of Types of Costs Not Covered by the Miscellaneous Expense Allowance (MEA)? The approving official cannot authorize the employee a rental car while they wait for the arrival of their POV at the new OCONUS duty location. It covers foreign and domestic relocations. 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. En route transportation for employee and immediate family members, 1. Reviewing Form 8518, Request for the Use of the Relocation Services Contract. Employees must submit Form 8741, Relocation Voucher, within 15 calendar days after the completion of each relocation activity, such as a househunting trip, real estate closing, or en route travel. IRS sends the W-2 reports and authorization reports by U.S. mail generated through the relocation system. This guide applies to all employees authorized by the IRS to relocate to a new official station in the interest of the government. The request is then forwarded to the Associate CFO for Financial Management for final approval. However, the result depends on the parameters of the established tax brackets. This section provides IRS guidance to supplement FTR Chapter 302, Part 302-4, Allowances for Subsistence and Transportation including: Use of more than one POV for en route travel. Approving officials are responsible for following the delegation orders when authorizing and approving relocation allowances for the relocating employee. If activities associated with the relocation cannot be conducted outside the employees regular working hours, an employee may be granted excused absence to make arrangements and to transact personal business directly related to a permanent change in duty station. The relocating employee is responsible for: Signing a Form 4282, Twelve-Month Service Agreement, for a domestic location within CONUS or Form 10902, Overseas Transportation - Service Agreement, for a foreign location Outside the Continental United States (OCONUS) or Form 9803, Transportation Agreement, for posts of duty in a non-foreign OCONUS location. Amending relocation authorizations for basic moving expenses, and amending relocation authorizations for basic plus moving expenses, to revise obligations when an entitlement (or expense) was not previously approved. In deciding whether to authorize transportation of a POV to a foreign OCONUS or a non-foreign OCONUS post of duty, the IRS must consider if: The conditions at the employee's new post of duty warrant use of a POV, The use of the POV involved is suitable to local conditions at the new post of duty, The use of the POV will contribute to the employee's effectiveness on the job, The cost of shipping the POV to and from the post of duty will be excessive considering the time the employee has agreed to serve. A list of the coordinators can be found on the relocation guidance website. All last move home activities must be completed within one year of the date of separation. When an employee itemizes miscellaneous expenses, instead of requesting reimbursement of the standard allowance, all receipts are required justifying the employee expenses starting with the first dollar amount incurred. 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. Permanent Change of Station (PCS) -- An assignment of a new appointee to an official station or the transfer of an employee from one official station to another on a permanent basis. Accordingly, the 2020 IRS standard mileage rates are: 57.5 cents per business mile 17 cents per mile for medical or moving 14 cents for charitable reasons. The IRS will not reimburse employees for groceries purchased for use after the TQ expires. Tickets may not be obtained from any other source. The relocating employee is responsible for reimbursing the government for all costs incurred if the shipment is overweight. Employees who are on an overseas assignment and have signed a new service agreement or tour renewal to remain at the overseas post or to transfer to another overseas post will be authorized to continue extended storage and property management services at no expense to them. The requirements for classifying it as a job-related move included: The IRS has determined payment for extended storage of household goods for employees assigned to OCONUS locations will remain excluded from gross income and exempt from taxation. It also provides procedures for preparing and approving authorizations and claiming reimbursement for local travel expenses. 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). Shipment of a POV to a foreign or non-foreign OCONUS location after approval by the approving official. The IRS Commissioner will return the request back to Travel Policy and Review. The maximum period of time for TQ occupation is 120 days. Perishables including frozen foods, items requiring refrigeration or perishable plants unless: A copy of the lease (if applicable) is required for reimbursement. However, the IRS will pay for property management services if approved by the Associate CFO for Financial Management. Developing and issuing IRS relocation program policy. 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 a debt is established in connection with an employees relocation, the debt is subject to the debt collection procedures in IRM 1.36.4, Administrative Accounting and Financial Reports, Administrative (Non-Tax) Debt Management. Coordinating a report date with the gaining office approving official. Residence -- The one home from which an employee regularly commutes to and from work on a daily basis and which was their residence at the time an employee is officially notified by competent authority to transfer to a new official station. If the sale of land is in excess of that required for the employee's residence site, the employee will be limited to reimbursement for a pro rata share of expenses covering the acreage of what is reasonably related to the residence site. The WTA also reimburses the employee the federal tax withholdings on the WTA itself, since the WTA is also considered income to the employee. Transportation of a mobile home except if a government bill of lading is used, 3. All aspects of the relocation must be completed within one year from the report date of the transfer, including settlement of real estate transactions. There are debris pick up charges, if requested, within 30 days of delivery. The maximum employees will be reimbursed, regardless of their actual miscellaneous expenses, is one weeks basic gross pay when moving without an immediate family member or two weeks basic gross pay when moving with an immediate family member. Upon written request, the initial temporary storage period may be extended OCONUS for up to an additional 90 days for a total of 180 days under certain circumstances when approved by the authorizing official. 5 U.S. Code (USC) Section 5707, Regulations and Reports, 5 USC Section 5724, Travel and transportation expenses of employees transferred; advance of funds; reimbursement on commuted basis, 5 USC Section 5726, Storage expenses; household goods and personal effects, 5 USC Section 5737, Relocation expenses of an employee who is performing an extended assignment, 31 USC Section 901, Establishment of agency Chief Financial Officers, 31 USC Section 902, Authorities and functions of agency Chief Financial Officers, 31 USC Section 3726, Payment for Transportation, Federal Travel Regulation, Chapters 300-304. Residence transaction expenses (sell, buy, or lease termination expenses). 1. 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. TQSE are not authorized in a foreign area. Extended storage of household goods only when assigned to a designated isolated official station in CONUS, 1. If an employee does not have a government travel card, the employee should complete Form 4253-C, Relocation Travel Advance Request, to request a relocation advance. 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. Employees can claim both groceries and meals as part of their M&IE expenses. (10) IRM 1.32.12.15(2), Voucher Submission, Added TQ as an expense type and grocery and utility receipts as required documentation. Box 9002 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; Additional extensions beyond the two years may not be approved. Withholding Tax Allowance (WTA) -- The amount provided by the agency to gross-up taxable relocation allowances, reimbursements or direct payments to a vendor to offset the federal tax withholding. Relocation Income Tax Allowance (RITA) -- The payment to the employee to cover the difference between the withholding tax allowance (WTA), if any, and the actual tax liability incurred by the employee as a result of their taxable relocation benefits; Relocation Income Tax Allowance (RITA) is paid whenever the actual tax liability exceeds the WTA. Form 10902, Overseas Transportation Agreement, (for foreign OCONUS travel) - allows the employee to remain at that POD for a period of two years from the date the employee arrives, unless the employee's tour is interrupted for a reason beyond the employee's control and acceptable to the IRS. Employees must complete Form 13378, IRS Relocation Cost Comparison, and Form 14564, Request for Approval of Basic Plus Relocation Allowance Shipment of POV. 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: In accordance with IRM 6.610.1.3.9(1), IRS Hours of Duty, employees who are authorized moving expenses are required to obtain management approval to be excused from duty for the purpose of completing certain relocation transactions. Department of State Standardized Regulations (DSSR) for additional information on foreign and non-foreign OCONUS relocation. It also provides guidance to supervisory and administrative personnel who authorize, direct, review or certify payments for reimbursement of relocation expenses. A relocation debt may be established when: The applicable relocation activity for which an advance was issued is completed and the remaining balance of the advance exceeds the expenses claimed on an approved relocation voucher, or. Transportation of a mobile home in lieu of household good except if a government bill of lading is used, 5. Form 8445, Statement of Income and Tax Filing Status. Employees must submit each relocation voucher to the approving official for approval. Travel Policy and Review will provide the approval or disapproval request to the business unit and the CFO relocation coordinator electronically via email. The carrier is required to acknowledge all claims within 10 calendar days after receipt of a properly completed form. The lump sum payment will be the sum of the calculations in paragraphs (a) and (b) of this section. Employees must include the day(s) they are away from the new official station for personal reasons on Form 4702, Temporary Quarters Subsistence Expenses for Thirty Days (30 Days). Relocation for current employees is allowable in situations where the employee is reassigned and the relocation is in the best interest of the institution. The biggest moving hurdle, practically and tax-wise, is the 50-mile distance test. Travel Policy and Review will forward the request to an IRS Deputy Commissioner for approval or disapproval. Employees may be reimbursed the following allowances for temporary change of station: The IRS will not pay for residence transaction expenses for a TCS move. The CFO relocation coordinators are responsible for: Counseling and assisting relocating employees with relocation entitlements and allowances. A relocation advance becomes 90 days old. Assisting employees with requesting use of the relocation services contract. Employees cannot claim temporary quarters subsistence while they are on personal travel. This includes parking fees. Relocation authorizations -- The documents that authorize allowances on a relocation authorization for basic moving expenses and relocation authorization amendment for basic plus expenses, and other amendments for temporary quarters or any allowance not authorized on the original basic moving expense authorization that provide approval to relocate in the government's interest and are used to obligate relocation funds. Employees may receive per diem to return to the old official station, when they are detailed to a TDY location after the IRS designated the TDY location as the permanent official station. 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. Employees may contact one of the relocation coordinators for pre-transfer counseling. Beckley, WV 25802-9002. The following acronyms apply to this program: Employees should review the following IRMs: IRM 1.32.4, Government Travel Card Program, for information on the Travel Card Program and the Centrally Billed Government Travel Card Program, IRM 1.32.11, IRS City-to-City Travel Guide, for information on city-to-city travel, including domestic, foreign, invitational and emergency travel, IRM 1.32.13, Relocation Services Program, for information regarding the use of the relocation services contract. Your agent also may know a landscaper who can get the job done quickly. The CFO relocation technicians will calculate 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. 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. The employee should immediately return to the old official station and begin their relocation. Reviewing and approving Form 8741, Relocation Voucher as necessary prior to the employees report date to the new official station. Employees should contact the CFO relocation coordinator for assistance for requesting an extension to temporary storage under the Basic Relocation Allowances Program. Transportation and temporary storage of household goods except if a government bill of lading is used, 1. Consequently, employees would be required to reimburse the IRS for the amount of the WTA(s) previously paid to them for the related move. Transportation of a mobile home or boat used as a primary residence instead of the transportation of household goods, 1. Employees must discuss any unexpected or unusual circumstances as soon as possible with the carrier and the CFO relocation coordinator to prevent additional expenses. The IRS will pay for an employees transportation expenses for the authorized mode of travel that is determined to be the most advantageous to the government. The IRS will not reimburse employees for any househunting trip expenses incurred after the employee reports to their new official station and begins performing any work related to their new assignment. 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. Reviewing the requests for the use of the basic plus relocation allowances. Employees cannot relocate to the new official station before they have received an approved relocation authorization for basic moving expenses, before incurring permanent change of station (PCS) or temporary change of station (TCS). Residence transaction expenses (sell, buy, or lease termination expense), 3. (3) IRM 1.32.12.4.1(1)(Table B), New Appointee, Added that for new appointees assigned to first official station in foreign or non-foreign Outside the Continental United States (OCONUS), IRS must pay or reimburse RITA. Inform the employee of approved entitlements and allowances by listing the estimated amount for each allowance. 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 moving allowance is paid directly to the employee, reported as taxable income, and is subject to all tax liability at the time of payment. Carrier waiting time caused by employee IRS does not reimburse for charges if the employee or their representative are not present at the agreed upon time for the packing, pick up and delivery of household goods. Relocation advance -- The prepayment of estimated relocation expenses to an employee with the expectation that the employee will account for amounts received by filing a relocation voucher. Employees must submit a written request to the business unit head of office or director, Strategy and Finance, no later than 60 days before the one-year expiration date if they require additional time to complete their relocation activities. Employees must process their TDY expenses in the electronic travel system. See IRM 1.32.13, Relocation Services Program, for additional information. The maximum number of POVs that the approving official can authorize for en route travel is limited to the number of authorized licensed drivers, including the employee and immediate family members. Form 9803, Transportation Agreement, (for non-foreign OCONUS travel) - requires the employee to remain at that POD for a period of two years from the date the employee arrives, unless the employee's tour is interrupted for a reason beyond the employee's control, and acceptable to the IRS. Property management services after approval by the Associate CFO for Financial Management. Program Goals - The goals of this IRM are to ensure that IRS employees receive clear guidance and comply with the IRS relocation policies.

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