Additional IPA Information Martha M. Taylor 03 Dec 1999 12:03 EST
Pursuant to a discussion with our Director of Accounts Payable this
morning, I learned the following that might help in this discussion about
IPA agreements and reimbursement of certain living expenses.
What I think I heard was the IRS regulation says that income received by a
person in travel status for one year or less (say 364 days to be safe) for
standard expenses (lodging, meals and incidentals, transportation??) is not
taxable. However, if a person actually "moves" and is reimbursed for
moving expenses then they may not be considered on "travel status" and the
whole "caboodle" becomes taxable. Would anyone more knowledgeable than me
care to comment on this?
We also discussed the idea that reimbursement of some reasonable amount to
pay for a roof over someone's head seems fair but that meals, travel to and
from work, and enhanced cable TV is not. Reimbursement should be only for
the absolute bare essentials needed to survive AND which would be
duplicative of expenses for keeping up a second household. For example,
two house payments is a burden. BUT if you are eating and driving to and
from work at your new location, you don't have a food or transportation
expense at your old location.
I am beginning to rethink the idea that there is a benefit to these types
of IPA arrangements. (just kidding)
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