CFR > Title 41 - Public Contracts and Property Management > SUBTITLE F—Federal Travel Regulation System > CHAPTER 302—RELOCATION ALLOWANCES (parts 302-1 to 302-17) > SUBCHAPTER E—RESIDENCE TRANSACTION ALLOWANCES (parts 302-11 to 302-15) > PART 302-12—USE OF A RELOCATION SERVICES COMPANY > SUBPART B—Agency's Use of a Relocation Services Company (§302-12.100 to §302-12.114) > 302-12.108—What are the income tax consequences that we must consider when offering relocation services?

302-12.108—What are the income tax consequences that we must consider when offering relocation services?

Amounts you pay to a relocation services company on behalf of an employee may be taxable to the employee. In some cases, such as certain homesale programs, the amounts may not be taxable. You must determine the taxability of such payments, and pay a relocation income tax (RIT) allowance in accordance with part 302-17 of this chapter on payments you determine to be taxable to the employee. You may contact the: Assistant Chief Counsel (Income Tax & Accounting), Internal Revenue Service, 1111 Constitution Avenue, NW., Room 5501, Washington, DC 20224, for information on the income tax consequences of payments you make to a relocation services company.

Code of Federal Regulations

Effective Date Note: By FTR Amdt. 2011-01, 76 FR 18344, Apr. 1, 2011, § 302-12.108 was redesignated as § 302-12.115 and a new § 302-12.108 was added and reserved, effective Aug. 1, 2011.