We have dealt with IPA's and had "displacement allowances" paid.  They
become part of the contract, and are payable separately from state travel
regulations because there's nothing about "displacement allowances" in this
regs.

As to tax matters:  (from memory NOT from a recent reading of the tax regs)
1  Over 1 year is a move of "regular home".  That's ONLY for the
individual, not for others inthe family, especially for a spouse and
dependents.  BUT maybe the individual is traveling back and forth and so it
is not a true move.  Also, two sequential IPA's with some minimum time
between them could document that it is NOT a move of "home".

2   The amount collected as displacement allowance is income, but can be
offset by expenses.  I'd be truely  surprised if the relocation allowance
covers all expenses!  Also, if rates are set in accordance with IRS "we'll
accept it without documentation" rules, at least the M&IR part is a wash
for the taxpayer.

Chuck

At 11:03 AM 12/3/99 -0600, you wrote:
>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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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
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