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Accountable Plan

An employer's reimbursement or allowance arrangement for reimbursement of an employee's travel expenses or M&IE expenses might be an accountable plan.  To be qualified as an accountable plan, the arrangement must include all of the following rules.

  1. Your expenses must have a business connection.  That is, you must have paid or incurred deductible expenses while performing services as a truck driver.

  2. You must adequately account to your employer for these expenses within a reasonable period of time.

  3. You must return any excess reimbursement or allowance within a reasonable period of time.

Per diem reimbursements for those in the trucking industry (company truck drivers) often satisfy these tax requirements, but not always. Reimbursements that do not meet those requirements are likely to be considered part of a nonaccountable plan.

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