(7) IRM 1.32.12.6(7), Allowance for Househunting Trip Expenses, Added paragraph to include provisions and calculations for lump-sum househunting trip expenses. See IRM 1.32.13, Relocation Services Program, for additional information. The amount that the IRS will reimburse is limited to the cost of transporting the household goods and PBP&E in one lot not to exceed 18,000 pounds net weight from the authorized origin to the authorized destination. This guide is intended to supplement the Federal Travel Regulations (FTR). The IRS will not reimburse employees for groceries purchased for use after the TQ expires. Processing third-party payments for use of the relocation services contract for home sale and property management services. The item is shipped less than 150 miles. This section provides IRS guidance and instructions to supplement FTR Chapter 302, Part 302-8, Allowances for Extended Storage of Household Goods including: Extended storage during assignment to isolated locations within CONUS, Extended storage during assignment OCONUS. The employee must complete: Form 8741, Relocation Voucher. It covers foreign and domestic relocations. Beckley, WV 25802-9002 For example, if you moved a distance of 1,485 miles with 10,000 pounds of household goods, you would multiply . 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. The CFO relocation coordinators are responsible for: Counseling and assisting relocating employees with relocation entitlements and allowances. 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. A copy of the form should be submitted to the CFO relocation coordinator and maintained by the employee for their personal records. If the transfer is cancelled, postponed or the service agreement is violated, the advanced amount must be returned immediately. Employer-Paid Moving Expenses: Are They Taxable? - The Balance 1. Employees must complete Form 13378, IRS Relocation Cost Comparison, and Form 14564, Request for Approval of Basic Plus Relocation Allowance Shipment of POV. Shipment and/or storage of a POV if authorized for an overseas assignment or CONUS except if a government bill of lading is used, 4. The RITA is paid in two parts: Through the payment of a withholding tax allowance (WTA) at the time vouchers are paid. Meeting all prerequisites for use of the basic plus relocation program such as marketing the residence for the specified time period before requesting the service. The one-year limit can be extended for an additional year by the employee through their approving official. If authorized, an employee and their immediate family can occupy TQ for a period not to exceed 60 days. (9) IRM 1.32.12.7(25), Allowance for Temporary Quarters (TQ) Subsistence Expenses, Added paragraph to explain the calculation for lump sum TQSE payments. The lump sum payment will be the sum of the calculations in paragraphs (a) and (b) of this section. (1) IRM 1.32.12.1.7, Acronyms, Updated acronyms. 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. Transportation of a mobile home except if a government bill of lading is used, 3. Temporary Change of Station (TCS) --The relocation of an employee to a new official station for a temporary period while performing a long-term assignment, and subsequent return to the previous official station upon completion of that assignment. Are There Any Restrictions to the Types of Costs We May Cover? IRS Announces Standard Mileage Rates for 2022 - Investopedia 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. (10) IRM 1.32.12.15(2), Voucher Submission, Added TQ as an expense type and grocery and utility receipts as required documentation. 6.575.1.1.1 (03-03-2020) Background Recruitment, relocation, and retention incentives (3Rs) are compensation flexibilities available to help Federal agencies recruit and retain a world-class workforce. Authorized family members under age 12 receive up to 175 pounds each. Advances should be kept to the minimum amount needed to cover the employees needs, but no more than 75% of the estimated reimbursable expenses expected to be incurred. Ensuring criteria is met for basic plus allowances and forwarding the requests to the Associate CFO for Financial Management for decision. If an employee is separated from the government before completing one year of an agreed tour of duty, under circumstances that appear to be beyond their control, the facts should be presented to the Commissioner. Employees cannot receive per diem at a TDY location when it becomes their permanent official station. Allowable IRS moving deductions before tax reform Prior to the Tax Cuts and Jobs Act, taxpayers moving for a job were allowed to claim moving expense deductions on their taxes. The business unit head of office is responsible for: Authorizing and approving basic relocation allowances program requests on relocation authorizations for basic moving expenses. A statement of the transfer date if such date cannot be otherwise verified. 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. Employees are entitled to TQ before departing to an overseas post of duty. If the Commissioner determines that the separation was beyond the employees control and acceptable to the IRS, the employee will be relieved of all indebtedness normally arising from the early separation. The nature of the assignment may not be related to the new position. Employees must be occupying their residence at the time they are notified of the transfer to be reimbursed for expenses incurred for residence transactions. 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. This section provides IRS guidance to supplement FTR Chapter 302, Relocation Allowances, Subpart A, Part 302-1, General Rules, and 302-2, Employee Eligibility Requirements, including: A service agreement is a written agreement between the employee and the IRS, signed by the employee and an approving official, stating that the employee will remain in the service of the government for a period of time as specified in after the employee has relocated. 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. Primary Stakeholders - The primary stakeholders are employees relocating, domestically and internationally, who have been authorized relocation allowances in the interest of the government. The IRS must consider the following to determine whether to ship a POV within CONUS: The cost of travel if the POV is transported, The productivity benefit derived from the employees accelerated arrival at the new station, The POV is in operating order, legally titled and tagged for driving, The distance to drive is 600 miles or more. Transportation and temporary storage of household goods except if a government bill of lading is used, 1. The brokers fees or advertising charges are not in excess of those customarily charged for comparable services in that locality. That means the previous IRS distance test or "50 mile rule" and time test of 39 weeks in 12 months, are now moot. The IRS mileage reimbursement covers the use of specific vehicles, namely: cars, vans, pickups, and panel trucks. Employees may not ship or store a trailer, airplane or any vehicle intended for commercial use. (11) IRM 1.32.12.17(3), Relocation Debts, Updated section for clarification. Employees and their spouses may choose to complete a one-way househunting trip if time does not permit a round trip to seek permanent living quarters. Relocation for current employees is allowable in situations where the employee is reassigned and the relocation is in the best interest of the institution. Transportation and temporary storage of household goods except if a government bill of lading is used, 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. Authority to approve relocation travel allowances is delegated to the appropriate level in the business units in accordance with Delegation 1-3, Authorization of Employee Relocation Allowances and Approval of Relocation Reimbursements. This authority may be redelegated, in writing, by the business unit head of office to the director, Strategy and Finance or their equivalent. The gaining office approving official is responsible for: Informing the employee of their transfer within a time frame that provides the employee with sufficient time for preparation for the move. A copy of the lease (if applicable) is required for reimbursement. The business units Deputy Commissioner (or the Chief of Staff for Commissioner direct-report organizations) may authorize an exception to the 50-mile threshold on a case-by-case basis. All requests for shipment of POV within CONUS must be approved by the Associate CFO for Financial Management. 1. Separate roles are established for analysts, junior analysts and technicians for processing relocation documents. 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. This section provides IRS guidance to supplement FTR Chapter 302, Relocation Allowances, Part 302-5, Allowance for Househunting Trip Expenses, including: The IRS may authorize only one round trip for the employee and/or spouse in connection with a particular transfer. 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. The gaining budget office is responsible for: Contacting the designated CFO relocation coordinator to initiate the preparation of the relocation authorization for basic moving expenses immediately to ensure the authorization will be signed by an approving official prior to incurring any expenses. Employees may ship their household goods and professional books, paper, and equipment (PBP&E) from more than one origin point and/or to more than one destination point. 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. The technician is responsible for filing the appropriate withholding taxes for moving expenses for state, territorial, or District of Columbia returns and for transmitting the tax withholdings to the IRS. See IRM 1.32.13, Relocation Services Program, for additional information on requesting this program. However, the result depends on the parameters of the established tax brackets. Box 9002 The approving official may approve extensions in 30 day increments, for an additional period of up to 60 days, for the occupancy of TQ where there is a compelling reason which is an event that is beyond the employees control and is acceptable by the IRS (for example, sudden illness, delayed delivery of household goods, inability to secure a permanent residence), or a demonstrated need for the additional time). 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. Withheld taxes may not be sufficient to cover the additional tax liability for the employee as a result of the higher tax bracket. This follows the distance guidelines found in Internal Revenue Service Publication 521, Moving Expenses. Taxable moving expenses are paid as pay supplements and are subject to FICA, federal, and state taxes. Per diem en route to new official station, 4. The IRS Commissioner will return the request back to Travel Policy and Review. Reimbursable Relocation Expenses and Rates | GSA An employee qualifies for a return separation at government expense when the employee successfully completes a tour of duty at an OCONUS post of duty as specified in the original service agreement which the employee signed when transferred. When the employee TQ period expires, it expires for their immediate family members as well. Documentation to show the date the employee was informed of the transfer and the date the employee informed the lease holder, if timeliness of notification to the lease holder is a factor in the settlement charge. Items that cannot be taken from the premises without damage to the item or premises. 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. IRS forwards the relocation Form W-2, Wage and Tax Statement, to each eligible employee by January 31. The IRS will only reimburse for storage when an employee receives a notice to evacuate their immediate family and/or household goods from their OCONUS post of duty, employees may store their POV at a place determined to be reasonable by the IRS whether or not the POV is already located at, or being transported, to the post of duty. The employee must include a Debt Collection Repayment memo with their payment. Column 2, item 1a: Allowed for transfers to a non-foreign OCONUS location. Educating customers on FTR and relocation policies. 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). The guidelines are based on IRS rules. 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. W2 workers can no longer deduct this due to the new tax laws in effect. Additionally, transportation of an employees POV to, from and between the CONUS and a post of duty outside the continental United States, or between posts of duty OCONUS will remain excluded from gross income and exempt from taxation. Routing any request for basic plus relocation allowances through the head of office or their designee to the Travel Management office for submission to the Associate CFO for Financial Management for decision. The RITA reimburses the employee for the federal and state tax withholdings on taxable relocation travel expenses. However, they may not receive an advance if the POV is shipped by a government bill of lading. An overweight household goods shipment and overweight household goods storage payment has been paid to a moving company and must be collected. 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. Excused absence may only be approved if the cost of relocation (travel and transportation of household goods) is paid by the IRS. For example, if the old official station is three miles from the current residence, then the new official station must be at least 53 miles from that same residence in order to receive relocation expenses for residence transactions. The technician calculates and applies the WTA automatically, requiring no change to the voucher filing procedures. Improve the overall effectiveness of an employee who is transferred or otherwise reassigned to a post of duty when it is in the government's interest for the employee to have use of a POV at the new official station. Shipment of a POV to a CONUS location when the distance is 600 miles or more after approval by the Associate CFO for Financial Management, 6. The employee is responsible for the additional tax liability, but may be reimbursed through the RITA process. 100% of all vouchers and third-party invoices are reviewed prior to processing. Employees must submit a relocation voucher within 15 calendar days of completing or cancelling any of the relocation activities and liquidate the outstanding advance. The maximum calculation is based on the standard CONUS rate and is reduced after the first 30 days of the TQ period. The FTR is the regulation contained in 41 Code of Federal Regulations (CFR), Chapters 300 through 304, that implements statutory requirements and executive branch policies for travel by federal civilian employees and others authorized to travel at government expense. Erroneous advice by an IRS representative does not bind the government to pay a claim that is in violation of regulations. 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. The trip home is temporary duty travel and the voucher should be filed in the IRS electronic travel system. 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 item requires no preliminary or en route services by the carrier such as watering or other preservative method. Use of the relocation services contract for property management services after approval by the Associate CFO for Financial Management. Assisting employees with requesting use of the relocation services contract. Employees are responsible for charges of excess weight for household goods under the actual expense method. Developing and issuing IRS relocation program policy. Employees should refer to FTR Chapter 302, Relocation Allowances, Part 16.202, Are There Any Restrictions to the Types of Costs We May Cover?, and Part 16.203, What Are Examples of Types of Costs Not Covered by the Miscellaneous Expense Allowance (MEA)?, for restrictions and examples of costs not covered by the miscellaneous expense allowance. 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. IRS Lowers Standard Mileage Rate for 2021 - SHRM This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-11, Allowances for Expenses Incurred in Connection with Residence Transactions, including: Request for reimbursement for residence sale and purchase. 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. The TQ may be utilized at the old official station and/or the new official station as long as it does not exceed the maximum period approved. PDF Frequently Asked Questions Regarding Relocation Expenses - Energy 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. All items a through e must be submitted to the *CFO.BFC.Relocation@irs.gov for processing. The approving official can authorize transportation of one POV to a foreign OCONUS or a non-foreign OCONUS post of duty in accordance with the rules for the OCONUS location. 3. A notice is sent to any employee who receives taxable reimbursements for more than one state prior to the mailing of their relocation Form W-2, Wage and Tax Statement. Public Law 115-97 known as the "Tax Cuts and Jobs Act of 2017" was signed into law on December 22, 2017. 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 amount of the moving allowance will be included in boxes 1, 3, and 5 of the employee's W-2. Requests for advances should be submitted two weeks before an employee anticipates incurring a relocation expense. Purpose - This IRM provides the policies and procedures for IRS employees who perform official relocation travel in the interest of the government. Upon written request, the initial temporary storage period may be extended within CONUS an additional 90 days for a total of 150 days under certain circumstances when approved by the authorizing official. The amount cannot exceed the maximum rate of a grade GS-13 biweekly pay for the locality area of the new official station. Per diem en route to new official station for new employee only, 2. How Tax Reform Affects IRS Moving Deductions - Moving.com Program Goals - The goals of this IRM are to ensure that IRS employees receive clear guidance and comply with the IRS relocation policies. Verifying that Form 8741, Relocation Voucher, are correct and filed within 15 calendar days after completion of each segment of the relocation activity. 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. 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. Employees must apply for separate advances to cover allowed expenses for househunting, en route travel, temporary quarters, and shipping and storage of household goods. 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. Form 8445, Statement of Income and Tax Filing Status. Employees must include supporting documentation with Form 8741, Relocation Voucher. Transportation of a mobile home in lieu of household good except if a government bill of lading is used, 5. They must contact the carrier within 75 days from the date of delivery to notify them of any loss or damage and to request a claim form. En route transportation for immediate family, 1. The form can be found at the CFO website, select: Travel Guidance and then Travel Policy and Procedures. Extended storage of household goods when assigned to a designated isolated official station in CONUS, 6. The IRS Commissioner is responsible for designating an official station as isolated to allow extended storage of household goods at the IRS expense. The carrier is required to acknowledge all claims within 10 calendar days after receipt of a properly completed form. Employees may not receive a travel advance for a last move home. Use of the relocation services contract to sell residence after approval by the Associate CFO for Financial Management. Use of the relocation services contract for property management services after approval by the Associate CFO for Financial Management, 1. (4) IRM 1.32.12.4.2(1)(Table E), Transferred Employees, Added that for transferred employees returning from foreign or non-foreign OCONUS official station to place of actual residence for separation, IRS must pay or reimburse RITA. Official station -- The location where the employee regularly performs their duties. Househunting per diem and transportation and for only the employee and spouse after approval by the approving official, 2. 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. 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. beer and wine) and pet related food/items are non-reimbursable as groceries. There is no authority to extend the relocation beyond the two years. The employee must begin their travel including transportation for the family and household goods after receiving an approved relocation authorization. The one-year limit may be extended for an additional year by the employee through their appropriate business unit approving official. Non-taxable moving expenses are paid through accounts payable. (1) This transmits revised IRM 1.32.12, Servicewide Travel Policies and Procedures, IRS Relocation Travel Guide. Reviewing relocation reimbursements and reconciling payments annually to ensure tax withholding and taxable income are recorded properly. Transportation and temporary storage of household goods, 6. The following terms and definitions apply to this program: Actual report date - The date when an employee or new appointee physically reports to the new or first official station and performs any integral work related to the transfer or appointment. The employee's initial allowance for temporary storage of household goods within CONUS is 60 days and OCONUS is 90 days. The following forms apply to this program: Page Last Reviewed or Updated: 07-Jun-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Travel to the New Official Station Prior to the Report Date, Senior Executive Service (SES) Separation for Retirement Last Move Home, Allowances for Subsistence and Transportation Expenses, Use of More Than One Privately-Owned Vehicle (POV) for En Route Travel, Allowance for Temporary Quarters (TQ) Subsistence Expenses, Transportation and Temporary Storage of Household Goods, and Professional Books, Papers, and Equipment, and Baggage Allowances, Unaccompanied Air Baggage (UAB) Allowance, Household Goods Traffic Management Program, Allowances for Extended Storage of Household Goods, Extended Storage During Assignment to Isolated Locations Within the Continental United States (CONUS), Extended Storage During Assignment Outside the Continental United States (OCONUS), Allowances for Transportation and Emergency Storage of a Privately-Owned Vehicle (POV), Transportation of Privately-Owned Vehicle (POV) to an Outside the Continental United States (OCONUS) Post of Duty, Return Transportation of a Privately-Owned Vehicle (POV) From an Outside the Continental United States (OCONUS) Post of Duty, Transportation of a Privately-Owned Vehicle (POV) Within the Continental United States (CONUS), Emergency Storage of a Privately-Owned Vehicle (POV), Allowances for Transportation of Mobile Homes and Boats Used as a Primary Residence, Allowances for Expenses Incurred in Connection with Residence Transactions, Request for Reimbursement for Residence Sale and Purchase, Travel and transportation expenses of employees transferred; advance of funds; reimbursement on commuted basis, Storage expenses; household goods and personal effects, Relocation expenses of an employee who is performing an extended assignment, Establishment of agency Chief Financial Officers, Authorities and functions of agency Chief Financial Officers, Department of State Standardized Regulations, Foreign Affairs Manual: United States (U.S.) Department of State, Foreign Affairs Handbook - U.S. Department of State, Allowances for Subsistence and Transportation, Allowance for Temporary Quarters Subsistence Expenses, Transportation and Temporary Storage of Household Goods, Professional Books, Papers, and Equipment, and Baggage Allowance, Allowances for Transportation and Emergency or Temporary Storage of a Privately Owned Vehicle.