IRS will not reimburse the cost of additional insurance purchased by the employee to cover authorized family members. Employees cannot use the IRS electronic travel system to request relocation advances or to enter relocation expenses. Travel Operations reviews for effectiveness by: Conducting a weekly review of all relocation vouchers and invoices to ensure compliance with prompt payment processing guidelines. Transportation and temporary storage of household goods except if a government bill of lading is used, 1. 5% of the actual purchase price of the employee's residence at the new duty station. This includes parking fees. 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. Signing and verifying information in the service agreement. The travel card is a credit card issued by a financial institution under contract with Treasury which can only be used to pay for authorized official IRS travel and allowable travel-related expenses. It covers foreign and domestic relocations. 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. Box 9002 If there is a discrepancy and a fee schedule is not available, employees will need to obtain information from the title company and at least three different realtors in the locality in which the expenses are incurred. All reimbursable expenses for short distance moves are taxable income and cannot be waived. The employee will make all arrangements for the move without the involvement of the institution. The IRS will not reimburse employees for expenses for local transportation expenses at the new post of duty as these are considered commuting cost and not reimbursable relocation expenses. Excused absence may only be approved if the cost of relocation (travel and transportation of household goods) is paid by the IRS. However, they may not receive an advance if the POV is shipped by a government bill of lading. 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. Shipment of a POV is a discretionary allowance that requires prior approval. A TCS is a relocation 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. The employee's initial allowance for temporary storage of household goods within CONUS is 60 days and OCONUS is 90 days. Foreign area (see also non-foreign area)-- An area that includes the Trust Territories of the Pacific Islands situated both outside the continental United States (OCONUS) and the non-foreign areas. Are There Any Restrictions to the Types of Costs We May Cover? Providing employees with a signed relocation authorization for basic moving expenses and relocation authorization amendment for basic plus moving expenses if necessary. 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. If employees receive reimbursement for any claimed expense from another source in error, they will be required to repay the duplicate reimbursement to the IRS by submitting the payment to: 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. See IRM 1.32.13, Relocation Services Program, for additional information. 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. If the transfer is cancelled, postponed or the service agreement is violated, the advanced amount must be returned immediately. Relocation allowances are determined by the type of assignment as a new appointee, student trainee, transferee, overseas tour renewal employee, separating employee or employee performing a TCS. The employee has the right to dispute a debt or request a waiver if they have documentation or additional information to support their request. Individuals can no longer deduct or exclude moving expenses on their federal tax returns. 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. However, an employee may be entitled to receive reimbursement of actual expenses up to the maximum calculation of per diem allowances for temporary quarters when they arrive at the new official station, if authorized. Employees are entitled to TQ before departing to an overseas post of duty. Items purchased as groceries must be used or consumed while occupying TQ. 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. Employees can only claim reimbursement for one real estate transaction at the old station for either the cost of settling a lease or the sale of a residence. The amount of the moving allowance will be included in boxes 1, 3, and 5 of the employee's W-2. The IRS will not reimburse employees for groceries purchased for use after the TQ expires. Department of State Standardized Regulations (DSSR) for additional information on foreign and non-foreign OCONUS relocation. The income is reported to the payroll state as identified by the employee during the year that the expenses were reimbursed. 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. In the event you do not satisfy all requirements at the conclusion of the 12-month period, you must reverse the deduction. Documentation requested may include, but will not be limited to: The current schedule of closing costs which applies to the area in which employee is buying or selling, Information concerning local custom and practices with respect to charging of closing costs which relate to either their sale or purchase and whether such costs are customarily paid by the seller or purchaser, Information on the local terminology used to describe the costs specified in paragraph (b) above. (1) This transmits revised IRM 1.32.12, Servicewide Travel Policies and Procedures, IRS Relocation Travel Guide. Expenses for the cost of lodging, meals, groceries, and other items. Employees may contact one of the relocation coordinators for pre-transfer counseling. The IRS may authorize the payment of relocation expenses to: Attract qualified candidates willing to relocate, Attract a specific individual with a unique set of skills not easily found in the area, Accommodate a mandatory or directed reassignment. 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. Use of the travel card for temporary quarters is encouraged but not mandatory. 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. (11) IRM 1.32.12.17(3), Relocation Debts, Updated section for clarification. 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. Employees have the option of beginning TQ alone or at the time their family vacates the old residence. Ensuring criteria is met for basic plus allowances and forwarding the requests to the Associate CFO for Financial Management for decision. Perishables including frozen foods, items requiring refrigeration or perishable plants unless: Third-party services related to the shipment of the employee household goods, such as washer/dryer disconnect and reconnect of gas appliances that are determined to be necessary and incident to the move. 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 must drive then the spouse must fly to the new post of duty. Transportation of a mobile home except if a government bill of lading is used, 3. Relocations that occurred prior to January 1, 2018, are still deductible. 4. Authorizing official -The head of office authorized to approve relocation authorizations in accordance with Servicewide Delegation Orders pertaining to relocation travel. Use of the relocation services contract to sell residence after approval by the Associate CFO for Financial Management. 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. Federal, state and local laws or carrier regulations may prohibit common carrier shipment of certain articles. Delegation Order 1-3, Authorization of Employee Relocation Allowances and Approval of Relocation Reimbursements, for information on approval of relocation activities. A copy of the form should be submitted to the CFO relocation coordinator and maintained by the employee for their personal records. The FTR represents the governing document for relocation policy for all IRS employees. 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). Form 8445, Statement of Income and Tax Filing Status does not require the approving officials signature. The IRS will pay for an extra stop for charges assessed for one origin pick up and one destination delivery. It is understood and agreed that regardless of whether or not an offer is presented by a ready, willing and able buyer: Itinerary invoice for common carrier transportation reflecting method of payment, Rental truck/towing equipment contract and receipt, Transportation Agreement (Posts of Duty in Non-Foreign OCONUS), Overseas Transportation-Service Agreement, IRS Relocation Travel-Cost Comparison Worksheet Driving vs. 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. An employees request for relief of the service agreement for failing to effect the transfer is denied and must be collected. The move must be made within one year of employment. Employees cannot receive per diem at a TDY location when it becomes their permanent official station. Shipment of a POV from OCONUS requires approval if the POV was not previously shipped to that OCONUS location, 4. The standard IRS mileage rates for the first six months of 2022 were 58.5 cents per mile for business, 18 cents for medical and moving, and 14 cents per mile for charity. The WTA could exceed the RITA where the marginal tax rate is less than the supplemental wage withholding. 1. Employees must provide a written statement to their assigned CFO relocation coordinator that the mobile home or houseboat is their primary residence. 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. 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. Transportation of an employees POV within CONUS, however, will be included in the employees gross income and subject to tax liability for those payments. User profiles for moveLINQ access are appropriate for the job duties. Property management services after approval by the Associate CFO for Financial Management. The technician prepares a Form W-2, Wage and Tax Statement, for each employee to whom payments were made for moving expenses no later than January 31 of each year. Househunting trip expenses after approval by the approving official, 2. The reporting date will be the first day of the one-year time limit allowed to complete all applicable relocation activities. Shipment of a POV from OCONUS requires approval by the approving official if the POV was not previously shipped to that OCONUS location, 2. An official website of the United States Government. Under no circumstances should a shipment weigh over 20,000 gross pounds (the 18,000 pounds net weight of the household goods plus the 2,000 pound allowance for packing materials). Foreign Affairs Manual: United States (U.S.) Department of State, for additional information on foreign and non-foreign OCONUS relocation, Foreign Affairs Handbook - U.S. Department of State, for additional information on foreign and non-foreign OCONUS relocation. Shipment of a POV to a foreign or non-foreign OCONUS location requires approval by the approving official, 2. CFO relocation technicians are responsible for: Reviewing and paying relocation vouchers and invoices submitted for reimbursement. Extended storage of household goods when assigned to a designated isolated official station in CONUS, 6. The IRS may authorize reimbursement: If employees are departing a POD in the U.S. for an OCONUS foreign post, employee may be granted up to 10 days of pre-departure subsistence. (2) IRM 1.32.12.4.1(1)(Table A), New Appointee, Added that for new appointees assigned to first official station in Continental United States (CONUS), IRS must pay or reimburse Relocation Income Tax Allowance (RITA). The trip home is temporary duty travel and the voucher should be filed in the IRS electronic travel system. Developing and issuing IRS relocation program policy. The IRS can reimburse an employee for meals when obtaining lodging from family and friends. Beckley Finance Center Approving requests for basic plus allowances for shipment of privately-owned vehicles (POV) within the Continental United States (CONUS) and use of the Relocation Services Program. This rate has remained steady for years You can deduct these costs if you're self-employed. Each travel card reflects an individual account established in the travel cardholder's name. The maximum period of time for TQ occupation is 120 days. Shipping a Privately-Owned Vehicle (POV), Request for Approval for Basic Plus Relocation Allowance Shipment of Privately-Owned Vehicle (POV), Property Management Reimbursement Request, Relocation Authorization for Basic Moving Expenses, Relocation Authorization Amendment for Basic Plus Moving Expenses, Twelve-Month-Service Agreement (50 United States and the District of Columbia), Employee Application for Reimbursement of Expense Incurred upon Sale and/or Purchase of Residence upon Change of Official Station, Temporary Quarters Subsistence Expenses For Thirty (30) Days, Statement of Income and Tax Filing Status. Approving officials are responsible for following the delegation orders when authorizing and approving relocation allowances for the relocating employee. . If employees are departing a post in the U.S. for an OCONUS non-foreign post, employee may be granted a TQSE allowance. The household goods carrier prepares a cost comparison between the authorized route and the route requested by the employee. 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. $191.82 (the rate for distances between 1,001 and 1,500 miles) by 100 (10,000 pounds of goods divided by 100 to get the CWT weight), for a reimbursement amount of $19,182.. Relocation Income Tax Allowances (RITA) Internal Revenue Service (IRS) guidelines for the actual moving trip for household members are specific to one (one-way) trip per household member, including the employee. Employees and their authorized immediate family members are entitled to UAB allowance if the employee is transferred to an OCONUS location. 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. 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. Return separation occurs once the employee has completed the duty OCONUS as specified in the service agreement, IRS must pay one-way transportation expenses for the employee, for the family member(s) and for the household goods. See IRM 1.32.13, Relocation Services Program, for additional information on requesting this program. Use of the government travel card for TQ is not mandatory. Employees may obtain additional value protection at their own expense from the carrier. 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. Email -*CFO.BFC.Relocation@irs.gov The WTA also reimburses the employee the federal tax withholdings on the WTA itself, since the WTA is also considered income to the employee. TQSE for 60 days and an extension up to an additional 60 days after approval by the approving official, 3. 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. 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). 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; The distance between the official station and residence is the shortest of the commonly traveled routes between them. 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. Residence transaction expenses (sell, buy, or lease termination expense), 3. Househunting and per diem for employee and spouse only, 2. 100% of all vouchers and third-party invoices are reviewed prior to processing. Assisting employees with requesting use of the relocation services contract. 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. Transportation of a mobile home or boat used as a primary residence instead of the transportation of household goods. 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. Junior analysts review and approve relocation documents in moveLINQ and IFS. Items that cannot be taken from the premises without damage to the item or premises. The applicable service agreement must be signed by the employee, prior to the approving official signing the Relocation Authorization for Basic Expenses. Submitting signed and approved Form 8741, Relocation Voucher, to the technician, with receipts and supporting documentation within 15 calendar days after completion of the relocation activity and ensuring claimed relocation expenses are correct. Residence transaction expenses (sell, buy, or lease termination expenses), 5. Such expenses cannot be avoided by sublease or other arrangement. It's designed to ensure your move isn't just a way to ease your daily commute to work. The brokers fees or advertising charges are not in excess of those customarily charged for comparable services in that locality. ATTN: Relocation Unit See IRM 1.36.4, Administrative Accounting and Financial Reports, Administrative (Non-Tax) Debt Management for details surrounding the debt waiver process and the employees appeal rights. 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: Employees calculate the maximum reimbursement allowed under the actual TQSE method by multiplying the number of days in a period (normally 30) that they incur TQSE by the applicable per diem rate for the employee and each family member based on the following chart: *Unaccompanied spouse or domestic partner occupies TQ in a location separate from the employee. 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. There are disallowed household goods items and restricted articles transported by the carrier. For each member of the immediate family, multiply the same number of days by .25 times the same per diem rate, as described in paragraph (a) of this section. En route transportation and per diem for employee and immediate family members, 1. The travel regulations prohibit reimbursement of meals and incidental expenses (M&IE) unless travel is in excess of 12 hours and 300 miles for en route travel. 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. Examples of conditions include: Expedited pickup or delivery services The carrier must provide service between 8 AM and 5 PM, Monday through Friday, excluding U.S. holidays. The IRS mileage reimbursement covers the use of specific vehicles, namely: cars, vans, pickups, and panel trucks. Employee has not contributed to the expenses by failing to give appropriate lease termination notice promptly after the employee has definite knowledge of the transfer. All items a through e must be submitted to the *CFO.BFC.Relocation@irs.gov for processing. Employees cannot incur any travel expenses prior to approval. Transportation and temporary storage of household goods, 6. Authorized family members under age 12 receive up to 175 pounds each. The amount claimed block on the Form 8741, Relocation Voucher, will be left blank as the RITA is calculated by the technician. Employees must submit Form 13635, Manual Travel Authorization, prior to travel to receive reimbursement for overseas tour renewal travel and submit Form SF1012, Manual Travel Voucher, within five business days after completion of the trip. However, the IRS will pay for property management services if approved by the Associate CFO for Financial Management. 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. Transportation of a mobile home or boat used as a primary residence instead of the transportation of household goods, 1. Employees who are marketing their home independently must include the following clause in the listing agreement or as an attachment to the listing agreement. Per diem en route to new official station, 4. beer and wine) and pet related food/items are non-reimbursable as groceries. Expenses associated with shipping a household pet (dog or cat), limited to transportation and handling costs required to meet the rules of air carriers. TQSE are not authorized in a foreign area. Relocation allowances for a short distance move, which is less than 50 miles from the old POD or residence, may only be authorized when it is determined by an IRS Deputy Commissioner to be in the best interest of the government with a written memorandum providing the exception. 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. IRS may reimburse for settlement expenses for an unexpired lease, including but not limited to, brokers fees for obtaining a sublease or charges for advertising if: Applicable laws or the terms of the lease provide for payment of settlement expenses. If the employee needs to occupy TQ more than 60 days, they must request an extension of TQ. Processing third-party payments to moving companies for household goods services including shipment, storage and delivery. 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. The back of the form will be left blank except for the following statement in the Description column: "RITA claim for the Year 20XX. Travel Policy and Review is responsible for: Reviewing requests for basic plus allowances and coordinating the requests to Travel Management for further elevation to the Associate CFO for Financial Management for a decision. 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 negotiation and settlement of the employee's claim is between the employee and the carrier. The technician will establish a receivable for the excess WTA, as the IRS overpaid federal taxes on the employee's behalf. 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. If the employees work involves recurring travel or varies on a recurring basis, the location where the work activities of the employees position of record are based is considered the regular place of work. The reimbursement will be based upon the U.S. locality rate. Purpose - This IRM provides the policies and procedures for IRS employees who perform official relocation travel in the interest of the government. If the employee did not ship a POV, then the employee should contact their assigned CFO relocation coordinator for assistance. Transportation for employee and immediate family member(s). When the employee has completed an OCONUS tour as specified in the service agreement, IRS must pay one-way transportation expenses for the employee and family member(s), per diem for the employee only, transportation and temporary storage of household goods and shipment of POV when authorized.