Employees may transport up to two POVs within CONUS to the new duty station provided each transportation is advantageous and cost effective to the IRS. (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. 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. What documents will I need to prove that I moved over 50 miles for Any additional days of temporary quarters. Employees must notify their technician if they have any change of their tax status such as an amended tax return or tax audit that would change the information provided for calculation of the RITA. The business unit must approve the employees extension and contact the CFO relocation coordinator 60 days before the expiration of the one-year limitation. Eligible travel costs include: Gas Oil Parking fees Tolls The IRS pays the total charges and will bill employees for the cost of transportation and other charges applicable to any excess weight. The employee must report in advance of the family, who remains at the old official station to sell the residence, ship household goods, complete the school term or adequate housing is not available at the new official station. (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. Surveys customers quarterly soliciting feedback from relocating employees on relocation voucher processing. Househunting and per diem for employee and spouse only, 2. 1.32.12.1.2 (04-14-2020) Authorities 5 U.S. Code (USC) Section 5707, Regulations and Reports How Tax Reform Affects IRS Moving Deductions - Moving.com 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. We have only lived here for 1.5 years and I understand if you move for a job 50 miles away that you aren't subject to the large tax. Through the payment of the final RITA in the following calendar year. The employee must include a Debt Collection Repayment memo with their payment. This term is synonymous with travel card, credit card, government issued-travel card and individual billed account (IBA). If the employee extends their two-year period, they must also 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. Coordinating a report date with the gaining office approving official. 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. 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. Employees must file a separate travel voucher in Concur for any temporary duty expenses. Employees must include supporting documentation with Form 8741, Relocation Voucher. For the employee, multiply the number of TQSE days authorized by the agency by .75 times the maximum per diem rate for the locality where TQ will be occupied. Reviewing and approving an extension for an expired one-year time limitation for employees to claim relocation expenses for an additional one year not to exceed two years. Beckley, WV 25802-9002 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. 2. TQSE are not authorized in a foreign area. GSA provides the required data elements and report format for the annual report. 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. An employee detailed to duty at a temporary duty location (TDY) location is not entitled to per diem at such place on and after the date they received notice, formal or informal, that the temporary station was to become the permanent official station. Travel Operations reviews for effectiveness by: Conducting a weekly review of all relocation vouchers and invoices to ensure compliance with prompt payment processing guidelines. The relocating employee is responsible for reimbursing the government for all costs incurred if the shipment is overweight. Gaining office -- The office where the employee will report and which will issue the relocation travel authorization and fund the travel. It also provides procedures for preparing and approving authorizations and claiming reimbursement for local travel expenses. The one-year limit can be extended for an additional year by the employee through their approving official. (1) This transmits revised IRM 1.32.12, Servicewide Travel Policies and Procedures, IRS Relocation Travel Guide. Non-temporary storage of household goods, 6. Expenses for permanent quarters or TQ which become permanent are not reimbursable. From July. It also provides guidance to supervisory and administrative personnel who authorize, direct, review or certify payments for reimbursement of relocation expenses. 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. CFO relocation coordinator - The primary employee that provides relocation benefit counseling to relocating employees. Authorized employees may ship their PBP&E in a separate lot, as an administrative expense, if their weight for household goods exceeds 18,000 pounds net weight. If a househunting trip is authorized, employees may be given a reasonable period of excused absence, up to 10 consecutive calendar days, that includes travel time. The IRBL provides full value protection service at no additional cost to the employee. The geographic limits of the official station are the corporate limits of the city or town where the employee is located, or, if not in an incorporated city or town, the reservation, station or other established area having definite boundaries where the employee is located, not to exceed 50 miles from the employee's location. To claim the deduction, you must report all relocation expenses on IRS Form 3903 and attach it to the personal tax return that covers the year of your move. 4. 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. Effective Jan. 1, for 2021 the IRS decreased to 56 cents per miledown 1.5 centsthe standard rate that many employers use to reimburse employees who drive their own cars or trucks for business. (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 should request their Relocation Authorization for Basic Moving Expenses, within six months prior to the date of separation and begin their relocation activities no later than six months after their date of separation. 2. CFO relocation technicians are responsible for: Reviewing and paying relocation vouchers and invoices submitted for reimbursement. This authority may be redelegated, in writing, by the business unit head of office to the director, Strategy and Finance or their equivalent. 2. Reviews are conducted to ensure vouchers and invoices are processed according to regulatory requirements and to ensure the expenses are included in gross income for tax compliance. Another Time Test You must have worked at your new location long enough to satisfy a third test: You worked full-time as an employee for at least 39 weeks during the 12 months following your move, or Internal controls are established to ensure the relocation program is managed effectively. 1. The amount of the moving allowance will be included in boxes 1, 3, and 5 of the employee's W-2. The general rule is for the employee to fly to the new post of duty. 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. This section provides responsibilities for: The CFO and Deputy CFO are responsible for the oversight of the IRS relocation program and also for: Overseeing policies and procedures and employee compliance with relocation allowances. (11) IRM 1.32.12.17(3), Relocation Debts, Updated section for clarification. ATTN: Relocation Unit Employer-Paid Moving Expenses: Are They Taxable? - The Balance 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. Shipment and/or storage of a POV when authorized within CONUS except if a government bill of lading is used, 5. (1) IRM 1.32.12.1.7, Acronyms, Updated acronyms. (See IRM 1.32.13, Relocation Services Program for additional information on marketing requirements and use of the Relocation Services Program). A copy of the lease (if applicable) is required for reimbursement. 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. Purpose - This IRM provides the policies and procedures for IRS employees who perform official relocation travel in the interest of 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. Excused absence may only be approved if the cost of relocation (travel and transportation of household goods) is paid by the IRS. 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. 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. Assisting employees with completing cost comparisons for shipping a POV. A one-way househunting trip is a trip to seek permanent living quarters after arrival in the local commuting area of the new official station, but before reporting to the office to work at the new assignment. 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. All extensions for temporary storage must be requested and approved by the employees businesss unit approving official. Extensions may be authorized by the approving official for subsequent service or tours of duty at the same or other overseas stations if: The income is reported to the payroll state as identified by the employee during the year that the expenses were reimbursed. The IRS will reimburse all necessary emergency storage expenses for a POV including, but not limited to: Preparing the POV for storage and for use after storage. Employees who are marketing their home independently must include the following clause in the listing agreement or as an attachment to the listing agreement. 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. Residence transaction expenses (sell, buy, or lease termination expense), 3. Consequently, employees would be required to reimburse the IRS for the amount of the WTA(s) previously paid to them for the related move. (See DSSR, section 242.2). Employees are required to reimburse the IRS for charges that result from shipping more than one lot from any unauthorized origins to any unauthorized destinations. Box 9002 Selling a House for a Job Relocation: Tips, Tools, and Taxes Employees may not ship or store a trailer, airplane or any vehicle intended for commercial use. Providing employees with a signed relocation authorization for basic moving expenses and relocation authorization amendment for basic plus moving expenses if necessary. 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. Such activities may relate to locating living quarters at the new POD (if a househunting trip was not authorized); sale of property; transportation and delivery of household goods; and securing utilities, driver's license and automobile tags. 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. 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. The authorized time period for extended storage of household goods is the duration of the assignment. Ensuring that administrative leave is only used for official relocation activities. When performing a one-way househunting trip, IRS considers all expenses for travel to the new official station as househunting expenses rather than en route travel. 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. Reimbursable grocery items include, but are not limited to the following: Dishwashing detergent, bathroom cleanser, toilet paper and soap, Alcoholic beverage (i.e. 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. (For example, employee is physically impaired, does not own or lease a POV and has only the POV that is used for family transportation or the POV is not road worthy for such a trip). 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. (6) IRM 1.32.12.6(3), Allowance for Househunting Trip Expenses, Updated section for clarification. ATTN: Debt Collection Unit The technician calculates and applies the WTA automatically, requiring no change to the voucher filing procedures. The employee's host must provide proof of increased costs. In the event you do not satisfy all requirements at the conclusion of the 12-month period, you must reverse the deduction. 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. 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 must provide a detailed receipt from the mover after transporting their mobile home or houseboat. Employees must submit Form 8741, Relocation Voucher, requesting reimbursement for expenses of an unexpired lease settlement with an itemization of all expenses claimed including: Documentary support showing that they paid all lease settlement fees.