Use of the relocation services contract to sell residence after approval by the Associate CFO for Financial Management. 4. 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. Approving official - The manager authorized to approve relocation vouchers in accordance with Servicewide Delegation Orders pertaining to relocation travel. Use of the government travel card for temporary quarters is encouraged but not required. The RITA does not reimburse employees for their Medicare or Social Security taxes on relocation travel expense reimbursements. The distance between the official station and residence is the shortest of the commonly traveled routes between them. En route transportation and per diem for employee and immediate family members, 1. The general rule is for the employee to fly to the new post of duty. Consequently, employees would be required to reimburse the IRS for the amount of the WTA(s) previously paid to them for the related move. Employees and their immediate family members may incur expenses after the signed document has been forwarded to the employee. The authorized methods for transportation, movement and temporary storage of household goods include actual expense method and do-it-yourself moves. It's designed to ensure your move isn't just a way to ease your daily commute to work. The WTA could exceed the RITA where the marginal tax rate is less than the supplemental wage withholding. The employee's host must provide proof of increased costs. (12) This revision includes changes throughout the document for the following: Updated the CFO office names and responsibilities, Per Executive Order 13988, references to he/she, him/her and his/hers were updated, Added minor editorial changes to include grammar and minor changes for clarification purposes. This is to protect employees in the event that they decide to use the Relocation Services Program. If a vehicle is necessary to perform the duties required by the position, such as traveling from the job site to a temporary duty location on a daily basis, the approving official may authorize car rental expenses under local travel guidelines. Give employees a job relocation package that explains how and when moving expenses will be reimbursed by your company. User profiles for moveLINQ access are appropriate for the job duties. However, they may not receive an advance if the POV is shipped by a government bill of lading. The employee must begin their travel including transportation for the family and household goods after receiving an approved relocation authorization. Employees may contact one of the relocation coordinators for pre-transfer counseling. Per diem for en route travel ends, whether the arrival is prior to or subsequent to the date on the approved relocation authorization. PDF Frequently Asked Questions Regarding Relocation Expenses - Energy 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. Relocation advance -- The prepayment of estimated relocation expenses to an employee with the expectation that the employee will account for amounts received by filing a relocation voucher. Residence expenses only for lease termination expenses foreign, 6. Shipment of a POV from OCONUS requires approval if the POV was not previously shipped to that OCONUS location, 4. 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. 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. Processing third-party payments to moving companies for household goods services including shipment, storage and delivery. Column 2, item 1a: Allowed for transfers to a non-foreign OCONUS location. The IRS will reimburse employees for expenses related to direct sale not to exceed: 10% of the actual sale prices for the employee's residence at the old duty station. The IRS will not reimburse the employee for the cost of comparable conventional lodging in the area or a flat rate amount. Assisting employees with completing cost comparisons for shipping a POV. 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. Program effectiveness: The CFO Travel Operations office completes the following to ensure the program is managed effectively: Monthly performance matrix that measures whether or not corrective actions are necessary. There is no authority to extend the relocation beyond the two years. The approving official may authorize the use of more than one POV if the employee meets one of the following circumstances: One POV cannot reasonably transport the entire family together with luggage. The RITA is paid in two parts: Through the payment of a withholding tax allowance (WTA) at the time vouchers are paid. GSA provides the required data elements and report format for the annual report. Hiring a pro to mow and trim a lawn costs an average of about $135, or between $50 and $220, depending on your yard's size. Employees should consider the following to determine their maximum authorized TQSE allowance: Expenses for actual subsistence that are directly related to the occupancy of the TQ. 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. IRM 6.610.1, IRS Hours of Duty, for information on the use of administrative leave in connection with a government authorized relocation travel, Joint Federal Travel Regulations, for additional information on foreign and non-foreign OCONUS relocation, Publication 521, Moving Expenses, for additional information on the 50-mile distance and time test guidelines for moving expenses. 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. 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. 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 employee will make all arrangements for the move without the involvement of the institution. The maximum number of POVs that the approving official can authorize for en route travel is limited to the number of authorized licensed drivers, including the employee and immediate family members. Effective transfer or appointment date will not always coincide with the reporting date. This date may be specified in the employee's service agreement. The IRS will pay for an employees transportation expenses for the authorized mode of travel that is determined to be the most advantageous to the government. For 2022, the business mileage rate is 58.5 cents per mile; medical and moving expenses driving is 18 cents per mile; and charitable driving is 14 cents per mile, the same as last year. 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. 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. 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. Beckley Finance Center 3. 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. 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. 2. Employees must provide a detailed receipt from the mover after transporting their mobile home or houseboat. The official station is one where the employee is not authorized to take or use the household goods. See IRM 1.32.13, Relocation Services Program, for additional information. 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). Arranging for a professional carrier to pack, load, ship and store the employees household goods, unaccompanied air baggage (UAB), and POV, if applicable, and preparing the Internal Revenue Bills of Lading (IRBL) for authorized services. The employee must immediately contact the carrier if they cannot be present at the appointed time to avoid additional fees. Travel to the new official station prior to the report date may only occur if the travel assignment is determined to be distinct from the new assignment and can be legitimately classified as temporary duty travel, in which case the payment of per diem may be authorized. Employees must file the RITA claim no later than June 30 of the year following the year when the tax reimbursements were paid unless the employee has an extension of their tax return, then the RITA claim is due 30 days after the approved extension. Employees have the option of beginning TQ alone or at the time their family vacates the old residence. CFO relocation technicians are responsible for: Reviewing and paying relocation vouchers and invoices submitted for reimbursement. Temporary Quarters Subsistence Allowance (TQSA) -- The Temporary Quarters Subsistence Allowance (TQSA) is an allowance provided to assist with temporary lodging, meals, laundry and dry cleaning while occupying temporary quarters at a new post and permanent residence is not yet available, or when an employee is getting ready to depart post of duty permanently and must vacate residence. An overweight household goods shipment and overweight household goods storage payment has been paid to a moving company and must be collected. My question is, before we sell the house, do we need an offer letter dated before the sale occurred? Temporary Quarters Subsistence Expenses (TQSE) -- The Temporary Quarters Subsistence Expenses (TQSE) is an allowance provided to reimburse actual subsistence expenses incurred by an employee and/or their immediate family while occupying temporary quarters. Educating customers on FTR and relocation policies. 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. Validating and entering information in the relocation system. Expenses for the cost of lodging, meals, groceries, and other items. Processing third-party payments to moving companies for shipment of POVs, if approved. Examples of such lodging include: Similar facilities or rooms that are not offered commercially, but made available to the public by area residents. 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. The applicable per diem rate for a househunting trip is the standard CONUS rate if the actual expense method is chosen. 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. The IRS allowed these moving deductions only when the person was moving for job-related reasons. Employees cannot claim temporary quarters subsistence while they are on personal travel. TQSE are not authorized in a foreign area. 5. The purpose of the POV shipment allowance is to: Reduce the government's overall relocation costs by allowing transportation of a POV to the employee's official station, within CONUS or OCONUS, when it is advantageous and cost effective. The authorized time period for extended storage of household goods is the duration of the assignment. 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. The FTR represents the governing document for relocation policy for all IRS employees. Employees must be occupying their residence at the time they are notified of the transfer to be reimbursed for expenses incurred for residence transactions. 4. (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 employee must be relocating by a distance of more than 50 miles. 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 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. IRS Form 3903: Are Moving Expenses Tax Deductible? 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 should contact the CFO relocation coordinator for assistance for requesting an extension to temporary storage under the Basic Relocation Allowances Program. Under the actual method, the IRS will pay the mover for the entire invoice. 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 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. Relocation allowances are determined by the type of assignment as a new appointee, student trainee, transferee, overseas tour renewal employee, separating employee or an employee performing a temporary change of station. 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. If an employee dies before the separation retirement travel is completed, the IRS pays moving expenses for the family even if the family chooses a different destination other than the one chosen by the employee. ATTN: Debt Collection Unit 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. Employees must complete Form 13378, IRS Relocation Cost Comparison, and Form 14564, Request for Approval of Basic Plus Relocation Allowance Shipment of POV. Providing employees with a signed relocation authorization for basic moving expenses and relocation authorization amendment for basic plus moving expenses if necessary. This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 30216, Allowance for Miscellaneous Expenses, including: If an employee elects the standard allowance rather than itemizing miscellaneous expenses, the IRS will reimburse the following amount without support or documentation: $650 or the equivalent of one weeks basic gross pay, whichever is the lesser of the amount, for employees relocating without an immediate family; $1,300 or the equivalent of two weeks basic gross pay, whichever is the lesser of the amount, for employees relocating with an immediate family member. 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. All aspects of the relocation must be completed within one year from the report date of the transfer, including settlement of real estate transactions. This guide applies to all employees authorized by the IRS to relocate to a new official station in the interest of the government. 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. Employees must provide a written statement to their assigned CFO relocation coordinator that the mobile home or houseboat is their primary residence. The maximum number of days that may be used for the TQSE lump sum calculation is 30 and no extensions are allowed when using the lump sum payment method. The carrier is required to acknowledge all claims within 10 calendar days after receipt of a properly completed form. Administering the relocation services contract. PDF Relocation and Moving Expenses for New Employees - Augusta University Email -*CFO.BFC.Relocation@irs.gov Extensions may be authorized by the approving official for subsequent service or tours of duty at the same or other overseas stations if: A copy of either the lease agreement under which a charge for settling an unexpired lease was levied or the legal citation that provides for the lease settlement charge. Relocations that occurred prior to January 1, 2018, are still deductible. After . 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. This follows the distance guidelines found in Internal Revenue Service Publication 521, Moving Expenses. The technician will establish a receivable for the excess WTA, as the IRS overpaid federal taxes on the employee's behalf. 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. Residence transaction expenses (sell, buy, or lease termination expense), 3. Internal Revenue bill of lading (IRBL) -- A contract using the actual expense method for transportation services between the United States (U.S.) Government and the carrier transporting the household goods, professional books, papers, and equipment (PBP&E), privately-owned vehicles (POV), and unaccompanied air baggage (UAB). 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. Employees are entitled to TQ before departing to an overseas post of duty. The technician sends the employee a statement of tax withholdings as each voucher is processed showing the voucher amount approved for payment, the WTA amount, and the federal, state and Federal Insurance Contributions Act (FICA) withholdings. 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. The purpose of the relocation authorization is to: Provide written approval authorizing the employee to incur relocation expenses. The . Reviewing and approving Form 8741, Relocation Voucher as necessary prior to the employees report date to the new official station. Paying all billing documents for overweight household goods shipments and non-allowed charges. Employees must contact their assigned CFO relocation coordinator for assistance with entitlements and allowances for basic relocation allowances and basic plus relocation allowances. 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. 3. Employees and their authorized immediate family members are entitled to UAB allowance if the employee is transferred to an OCONUS location. This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-9, Allowances for Transportation and Emergency or Temporary Storage of a Privately Owned Vehicle, including: Transportation of a POV to a OCONUS post of duty, Return transportation of a POV from a OCONUS post of duty. The employee must complete: Form 8741, Relocation Voucher.