Form 8445, Statement of Income and Tax Filing Status. The income is reported to the payroll state as identified by the employee during the year that the expenses were reimbursed. If an employee and their spouse perform a househunting trip, together or separately, multiply the applicable locality per diem rate by 6.25 (see https://www.gsa.gov/perdiem). 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. Any amount claimed must be reasonable and in proportion to the length of time employees occupy TQ. 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. (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. We plan to sell our home in WA and move to NC. Expenses incurred by driving a POV will be limited to the constructive costs of common carrier for trips of 250 miles or more. 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. Form 8445, Statement of Income and Tax Filing Status does not require the approving officials signature. If the travel to the new official station is an integral part of the new assignment, payment of per diem is not allowed and the beginning date of the travel is considered the employees report date. (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. The . 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. 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. 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. The General Services Administration (GSA) is responsible for establishing governmentwide relocation policies and procedures. 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. Approving officials are responsible for following the delegation orders when authorizing and approving relocation allowances for the relocating employee. Reviewing approved relocation authorizations for basic moving expenses, and relocation authorization amendments for basic plus moving expenses and obligating funding where necessary. The distance test does not take into consideration the location of a new residence. If the employee must drive then the spouse must fly to the new post of duty. The distance test is met when the new official station is at least 50 miles further from the employees current residence than the old official station is from the same residence. 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. Employees who are on an overseas assignment and have signed a new service agreement or tour renewal to remain at the overseas post or to transfer to another overseas post will be authorized to continue extended storage and property management services at no expense to them. That means the previous IRS distance test or "50 mile rule" and time test of 39 weeks in 12 months, are now moot. Extended storage of household goods when assigned to a designated isolated official station in CONUS, 6. In advance of the employee's travel, the family must travel to the new official station for acceptable reasons, such as enrolling children in school at the beginning of the term. The employee must include a Debt Collection Repayment memo with their payment. A relocation debt may be established when: The applicable relocation activity for which an advance was issued is completed and the remaining balance of the advance exceeds the expenses claimed on an approved relocation voucher, or. Under the Basic Plus Relocation Allowances Program, the IRS may pay the following additional relocation allowances: Employees must receive authorization for basic relocation allowances on, Relocation Authorization for Basic Moving Expenses, before requesting the basic plus relocation allowances on Relocation Authorization Amendment for Basic Plus Moving Expenses. Employees must submit the following forms for reimbursement of any real estate transactions: Form 4527, Employee Application for Reimbursement of Expense Incurred Upon Sale and/or Purchase of Residence, along with any receipts and documents pertaining to the sale or purchase of real estate, Receipts for allowable expenses paid outside of closing. Employees must file a separate travel voucher in Concur for any temporary duty expenses. 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. As an eligible SES career appointee who meets the conditions for a separation retirement may be reimbursed for relocation expenses which include the following: Upon separation, if the employee elects to reside in a different geographical area which is less than 50 miles from the official station, they will not receive reimbursement. Under the actual method, the IRS will pay the mover for the entire invoice. TQSE are not authorized in a foreign area. Per diem en route to new official station for new employee only, 2. Employees may not ship or store a trailer, airplane or any vehicle intended for commercial use. The technician calculates 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. Househunting and per diem for employee and spouse only, 2. Permanent Change of Station (PCS) -- An assignment of a new appointee to an official station or the transfer of an employee from one official station to another on a permanent basis. 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 The Basic Relocation Allowances Program also includes discretionary allowances as prescribed by the FTR: Temporary Quarters Subsistence Expenses (TQSE) for up to 60 days, Extension of temporary quarters for an additional 60 days not to exceed a total of 120 days, Shipment of a POV to a foreign or non-foreign OCONUS location, Extension of temporary storage of household goods within CONUS up to an additional 90 days not to exceed a maximum of 150 days and whenever there is an OCONUS origin or destination up to an additional 90 days not to exceed a maximum of 180 days. 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. These articles frequently include: Hazardous articles such as: explosives, flammable and corrosive materials, and poisons. Processing third-party payments to moving companies for household goods services including shipment, storage and delivery. Employees may place their property on the market any time after the Relocation Authorization for Basic Moving Expenses, has been approved. Employees should submit their claim(s) within 15 calendar days after the completion of the sale of the former residence and for expenses incurred in the purchase of a new residence. IRS sends the W-2 reports and authorization reports by U.S. mail generated through the relocation system. The business unit head of office is responsible for: Authorizing and approving basic relocation allowances program requests on relocation authorizations for basic moving expenses. Items purchased as groceries must be used or consumed while occupying TQ. CFO relocation coordinator - The primary employee that provides relocation benefit counseling to relocating employees. 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. Head of Office -- Any of the following IRS officials: Commissioner of Internal Revenue, Deputy Commissioners, Division Commissioners, IRS Chief Human Capital Officer, Chiefs, Chief Counsel, Chief of Staff, Directors reporting directly to the Commissioner or Deputy Commissioners and National Taxpayer Advocate. Reviewing the requests for the use of the basic plus relocation allowances. Transportation and temporary storage of household goods, 6. This section provides IRS guidance to supplement FTR Chapter 302, Relocation Allowances, Part 302-7, Transportation and Temporary Storage of Household Goods, Professional Books, Papers, and Equipment, and Baggage Allowance, including: Household goods traffic management program. Educating customers on FTR and relocation policies. Employees may be entitled to the following under the DSSR (Department of State Standardized Regulations) (Government Civilians-Foreign Areas), which is available from the Superintendent of Documents, Washington, DC 20402: 3. Give employees the opportunity to change their withholding (on Form W-4) to account for the relocation benefit and their tax liability. Local transportation to and from point of storage. TQSE for 60 days and an extension up to an additional 60 days after approval by the approving official, 3. The basic relocation allowances program must be authorized on relocation authorization for basic moving expenses and approved by the business unit head of office or their designee as defined in Delegation Order 1-3, Authorization of Employee Relocation Allowances and Approval of Relocation Reimbursements. Residence transaction expenses (sell, buy, or lease termination expenses), 5. 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. Use of the travel card for temporary quarters is encouraged but not mandatory. 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. Extended storage of household goods when assigned to a designated isolated official station in CONUS, 5. Transportation of a mobile home except if a government bill of lading is used, 3. Expenses for permanent quarters or TQ which become permanent are not reimbursable. For non-foreign OCONUS, the Department of Defense Per Diem, Travel and Transportation Allowances Committee establishes the per diem rate, and for foreign OCONUS, the Department of State establishes the per diem rates. The business unit must approve the employees extension and contact the CFO relocation coordinator 60 days before the expiration of the one-year limitation. Property management services after approval by the Associate CFO for Financial Management. Settlement of an employee's unexpired lease are reimbursable, when the employee's unexpired lease (including month-to-month) is for residence quarters at the employee's old official station. If the advance is not liquidated, a billing document is established. Verifying that Form 8741, Relocation Voucher, are correct and filed within 15 calendar days after completion of each segment of the relocation activity. 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. Erroneous advice by an IRS representative does not bind the government to pay a claim that is in violation of regulations. Using the government travel card for official travel including purchases of common carrier transportation, baggage fees, meals, vehicle rentals and other relocation related expenses. 2. The amount of the moving allowance will be included in boxes 1, 3, and 5 of the employee's W-2. Expenses for the cost of lodging, meals, groceries, and other items. The maximum weight allowance of household goods that may be shipped and/or stored at government expense is 18,000 pounds net weight. 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. The reimbursement will be based upon the U.S. locality rate. It covers foreign and domestic relocations. 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. 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. For the lump sum TQSE payment method, the employee is paid a lump sum for each authorized day up to 30 days. If employees sign a month's lease and they can provide a receipt for the applicable period, they are entitled to the full lodging expenses. The rules governing the IRS ability to pay for relocation expenses for new and current employees are as follows: The employee is transferring from one duty station to another for permanent duty and the new duty station is at least 50 miles from the old duty station. Shipment of a POV to a foreign or non-foreign OCONUS location after approval by the approving official, 5. However, the result depends on the parameters of the established tax brackets. The brokers fees or advertising charges are not in excess of those customarily charged for comparable services in that locality. 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. 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021 and 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021. Employees must contact their assigned CFO relocation coordinator for assistance with entitlements and allowances for basic relocation allowances and basic plus relocation allowances. 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. Relocation Income Tax Allowance (RITA) -- The payment to the employee to cover the difference between the withholding tax allowance (WTA), if any, and the actual tax liability incurred by the employee as a result of their taxable relocation benefits; Relocation Income Tax Allowance (RITA) is paid whenever the actual tax liability exceeds the WTA. 1. 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. 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. The employee must use their government travel card or the centrally billed account (CBA) for transportation costs for themselves and their immediate family members. The employees should contact the CFO relocation coordinator for assistance when requesting UAB allowance. Withheld taxes may not be sufficient to cover the additional tax liability for the employee as a result of the higher tax bracket. The extended storage is in the public's interest. There is no authority to extend the relocation beyond the two years. The IRS Commissioner is responsible for designating an official station as isolated to allow extended storage of household goods at the IRS expense. (1) This transmits revised IRM 1.32.12, Servicewide Travel Policies and Procedures, IRS Relocation Travel Guide. 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. 5% of the actual purchase price of the employee's residence at the new duty station. 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. All requests for shipment of POV within CONUS must be approved by the Associate CFO for Financial Management. 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. Excused absence may only be approved if the cost of relocation (travel and transportation of household goods) is paid by the IRS. Per diem for en route travel ends, whether the arrival is prior to or subsequent to the date on the approved relocation authorization. The WTA also reimburses the employee the federal tax withholdings on the WTA itself, since the WTA is also considered income to the employee. If the employee's immediate family members will be arriving at the new official station after the employee has entered TQ, the TQ period begins when the employee or any members of their immediate family initially enter TQ and the time shall run concurrently. However, the IRS will pay for property management services if approved by the Associate CFO for Financial Management. 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. The IRS will only reimburse for storage when an employee receives a notice to evacuate their immediate family and/or household goods from their OCONUS post of duty, employees may store their POV at a place determined to be reasonable by the IRS whether or not the POV is already located at, or being transported, to the post of duty. P.O. This authority may be redelegated, in writing, by the business unit head of office to the director, Strategy and Finance or their equivalent. A copy of the form should be submitted to the CFO relocation coordinator and maintained by the employee for their personal records. Professional license fees required by the new official station state that are directly related to the employee's or a family members occupation, such as fees required to take the bar exam or teaching certification. The employee will make all arrangements for the move without the involvement of the institution. Shipment of a POV from OCONUS requires approval if the POV was not previously shipped to that OCONUS location, 4. 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. 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). Reviewing Form 14564, Request for Approval for the Basic Plus Allowance Shipment of Privately-Owned Vehicle. 3. Paying all billing documents for withholding taxes associated with the relocation activities. Travel Policy and Review will forward the request to the Associate CFO for Financial Management for approval or disapproval. 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. 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. 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. Employees must complete Form 13378, IRS Relocation Cost Comparison, and Form 14564, Request for Approval of Basic Plus Relocation Allowance Shipment of POV. 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. Beckley Finance Center 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. Beckley Finance Center 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. 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. 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. 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). The IRS can reimburse an employee the cost of other types of lodging when there are no conventional lodging facilities in the area. Processing third-party payments to moving companies for shipment of POVs, if approved. Employees must be occupying their residence at the time they are notified of the transfer to be reimbursed for expenses incurred for residence transactions. 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.

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