Purpose - This IRM provides the policies and procedures for IRS employees who perform official relocation travel in the interest of the government. It also provides guidance to supervisory and administrative personnel who authorize, direct, review or certify payments for reimbursement of relocation expenses.

Audience - All business units

Policy Owner - CFO, Financial Management

Program Owner - CFO, Financial Management, Travel Management office develops and maintains this IRM.

Primary Stakeholders - The primary stakeholders are employees relocating, domestically and internationally, who have been authorized relocation allowances in the interest of the government.

Program Goals - The goals of this IRM are to ensure that IRS employees receive clear guidance and comply with the IRS relocation policies.

This section provides IRS guidance to supplement FTR Chapter 302, Subpart A, Part 302-1, General Rules.

The IRS may authorize the payment of relocation expenses to:

The rules governing the IRS ability to pay for relocation expenses for new and current employees are as follows:

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.

The purpose of the relocation authorization is to:

Public Law 115-97 known as the "Tax Cuts and Jobs Act of 2017" was signed into law on December 22, 2017. The law suspended qualified moving expense deductions along with the exclusion for employer reimbursements and payments of moving expenses effective January 1, 2018, for tax years 2018 through 2025. Relocations that occurred prior to January 1, 2018, are still deductible.

The IRS has determined payment for extended storage of household goods for employees assigned to OCONUS locations will remain excluded from gross income and exempt from taxation. Additionally, transportation of an employee’s 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. Transportation of an employee’s POV within CONUS, however, will be included in the employee’s gross income and subject to tax liability for those payments.

Employees cannot relocate to the new official station before they have received an approved relocation authorization for basic moving expenses, before incurring permanent change of station (PCS) or temporary change of station (TCS). Employees must contact their assigned CFO relocation coordinator for assistance with entitlements and allowances for basic relocation allowances and basic plus relocation allowances.

The IRS has two relocation programs:

Relocating employees are entitled to all mandatory payments allowable under the basic relocation allowances program. The basic relocation allowances program includes mandatory allowances by move type as prescribed by the FTR:

The Basic Relocation Allowances Program also includes discretionary allowances as prescribed by the FTR:

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.

The business units must submit the request for basic plus relocation allowances to Travel Policy & Review, *CFO Relocation Basic Plus Requests@irs.gov mailbox for review. Travel Policy and Review will forward the request to the Associate CFO for Financial Management for approval or disapproval. The Associate CFO for Financial Management will return the package to Travel Policy and Review. Travel Policy and Review will provide copies of the approval or disapproval to the CFO relocation coordinator.

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.

Employees are required to use their government travel card for themselves and authorized family members, househunting trip and en route travel in accordance with the rules governing the mandatory use of the government travel card. Use of the government travel card for temporary quarters is encouraged but not required.

Employees must contact the Travel Management Center (TMC) to obtain transportation tickets for themselves and family members. Tickets may not be obtained from any other source.

Employees may contact one of the relocation coordinators for pre-transfer counseling. A list of the coordinators can be found on the relocation guidance website.

Information regarding a hardship relocation program can be found on the relocation guidance website, or by contacting the designated points of contact in the business unit.

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. If activities associated with the relocation cannot be conducted outside the employee’s regular working hours, an employee may be granted excused absence to make arrangements and to transact personal business directly related to a permanent change in duty station. Such activities may relate to locating living quarters at the new POD (if a househunting trip was not authorized); sale of property; transportation and delivery of household goods; and securing utilities, driver's license and automobile tags. Excused absence may only be approved if the cost of relocation (travel and transportation of household goods) is paid by the IRS.

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.

This section provides IRS guidance to supplement FTR Chapter 302, Relocation Allowances, Subpart A, Part 302-1, General Rules, and 302-2, Employee Eligibility Requirements, including:

This section provides IRS guidance to supplement FTR Chapter 302, Relocation Allowances, Part 302-3, Relocation Allowance by Specific Type, including:

This section provides IRS guidance to supplement FTR Chapter 302, Part 302-4, Allowances for Subsistence and Transportation including:

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.

The applicable per diem rate for a househunting trip is the standard CONUS rate if the actual expense method is chosen.

The approving official can authorize the mode of transportation that provides the minimum time en route and maximum time at the new official station, as follows:

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. 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.

Employees and their spouses may choose to complete a one-way househunting trip if time does not permit a round trip to seek permanent living quarters. 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. However, if the employee’s spouse continues to seek permanent living quarters after the employee reports, the employee may receive reimbursement for the spouse’s expenses in support of househunting not to exceed 10 consecutive days.

For a lump-sum househunting trip, the expenses are reimbursed as follows:

This section provides IRS guidance to supplement FTR Chapter 302, Relocation Allowances, Part 302-6, Allowance for Temporary Quarters Subsistence Expenses, including:

Temporary quarters (TQ) refers to lodging obtained from private or commercial sources to be occupied temporarily (with the intent of moving to permanent quarters at a later date) by the employee and/or members of their immediate family who vacated the residence in which they were residing at the time the transfer was authorized.

If authorized, an employee and their immediate family can occupy TQ for a period not to exceed 60 days. 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 employee’s 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). The maximum period of time for TQ occupation is 120 days. 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.

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. For example, if the employee enters TQ on June 1, and their immediate family enters TQ at another location on July 1. The TQ period started June 1, for the employee and their immediate family. When the employee TQ period expires, it expires for their immediate family members as well. Employees have the option of beginning TQ alone or at the time their family vacates the old residence.

If the employee needs to occupy TQ more than 60 days, they must request an extension of TQ. They must contact their CFO relocation coordinator for assistance. All extension requests must be requested and approved by the employee’s business unit approving official.

Employees can obtain lodging from family and friends for TQ, however, the IRS will not reimburse employees the standard CONUS rate for lodging when obtaining TQ with family and friends. The IRS reimburses for the additional costs the host incurs in accommodating the employee, such as increased water or electric bills, if the employee is able to substantiate the costs. The IRS will not reimburse the employee for the cost of comparable conventional lodging in the area or a flat rate amount. The employee's host must provide proof of increased costs.

The IRS can reimburse an employee for meals when obtaining lodging from family and friends. The IRS will reimburse the employee the lower of the employee’s actual itemized daily meal costs or up to the maximum allowable amount for the employee and the authorized family members who are occupying TQ with the employee. The maximum calculation is based on the standard CONUS rate and is reduced after the first 30 days of the TQ period.

The IRS can reimburse an employee the cost of other types of lodging when there are no conventional lodging facilities in the area. For example, in remote areas or when conventional facilities are in short supply, because of an influx of attendees at a special event, such as the World’s Fair or international sporting event. Examples of such lodging include:

Expenses for permanent quarters or TQ which become permanent are not reimbursable. If the TQ become the employee’s 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. 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. This includes parking fees. 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. See IRM 1.32.1, Official IRS Local Travel Guide.

The IRS does not offer a lump sum reimbursement for TQSE.

Employees cannot claim temporary quarter’s subsistence while they are on personal travel. Employees must include the day(s) they are away from the new official station for personal reasons on Form 4702, Temporary Quarters Subsistence Expenses for Thirty Days (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. M&IE for the day(s) away from the new station are not reimbursable.

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:

Employee’s actual expenses must be itemized daily.

Employees should consider the following to determine their maximum authorized TQSE allowance:

Employees can claim both groceries and meals as part of their M&IE expenses.

Reimbursable grocery items include, but are not limited to the following:

Alcoholic beverage (i.e. beer and wine) and pet related food/items are non-reimbursable as groceries

Items purchased as groceries must be used or consumed while occupying TQ. Any amount claimed must be reasonable and in proportion to the length of time employees occupy TQ. The IRS will not reimburse employees for groceries purchased for use after the TQ expires. Employees should pay separately for personal expense items so that receipts submitted for reimbursement do not include non-reimbursable or unauthorized items.

Employees must submit copies of all grocery receipts and any other reimbursable expenses, such as, an individual meal or dry cleaning that is $75 and over. Receipts are required for all lodging expenses, utilities and furniture rentals. A copy of the lease (if applicable) is required for reimbursement.

Employees may use the government travel card to pay for TQSE. Use of the government travel card for TQ is not mandatory.

Employees are entitled to TQ before departing to an overseas post of duty. The IRS may authorize reimbursement:

Employees are entitled to 60 days temporary quarters upon arrival at the new overseas post of duty.

For the lump sum TQSE payment method, the employee is paid a lump sum for each authorized day up to 30 days. 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 lump sum calculation is as follows:

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:

The authorized methods for transportation, movement and temporary storage of household goods include actual expense method and do-it-yourself moves. Contact the CFO relocation coordinator for assistance.

The maximum weight allowance of household goods that may be shipped and/or stored at government expense is 18,000 pounds net weight. A 2,000 pound allowance is added to the 18,000 pounds net weight allowance to cover packing materials for the shipment. 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). The relocating employee is responsible for reimbursing the government for all costs incurred if the shipment is overweight. Employees are responsible for any additional cost if they have their household goods transported and/or stored and the combined weight exceeds the 18,000 pounds net weight (20,000 pounds including packing materials) limitation.

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. The amount that the IRS will reimburse is limited to the cost of transporting the household goods and PBP&E in one lot not to exceed 18,000 pounds net weight from the authorized origin to the authorized destination. Under the actual method, the IRS will pay the mover for the entire invoice. Employees are required to reimburse the IRS for charges that result from shipping more than one lot from any unauthorized origins to any unauthorized destinations. The household goods carrier prepares a cost comparison between the authorized route and the route requested by the employee.

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 file a claim directly with the carrier that transported the household goods for any loss or damages. 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. The carrier is required to acknowledge all claims within 10 calendar days after receipt of a properly completed form. The negotiation and settlement of the employee's claim is between the employee and the carrier.

Federal, state and local laws or carrier regulations may prohibit common carrier shipment of certain articles. These articles frequently include:

The IRBL provides full value protection service at no additional cost to the employee. The basis for the full value protection service is $6 per pound multiplied by the net weight of the shipment. Employees may obtain additional value protection at their own expense from the carrier.

This section provides IRS guidance and instructions to supplement FTR Chapter 302, Part 302-8, Allowances for Extended Storage of Household Goods including:

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:

The purpose of the POV shipment allowance is to:

This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-10, Allowances for Transportation of Mobile Homes and Boats Used as a Primary Residence, including:

In lieu of transportation of household goods at government expense, employees may be entitled to an allowance for transportation of their mobile home or houseboat within CONUS, Alaska and through Canada en route between Alaska and CONUS. Employees must provide a written statement to their assigned CFO relocation coordinator that the mobile home or houseboat is their primary residence.

Employees must provide a detailed receipt from the mover after transporting their mobile home or houseboat.

This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-11, Allowances for Expenses Incurred in Connection with Residence Transactions, including:

Employees must be occupying their residence at the time they are notified of the transfer to be reimbursed for expenses incurred for residence transactions.

Employees may place their property on the market any time after the Relocation Authorization for Basic Moving Expenses, has been approved.

The IRS will reimburse employees for expenses related to direct sale not to exceed:

Employees who are marketing their home independently must include the following clause in the listing agreement or as an attachment to the listing agreement. This is to protect employees in the event that they decide to use the Relocation Services Program. (See IRM 1.32.13, Relocation Services Program for additional information on marketing requirements and use of the Relocation Services Program). Failure to include the exclusion clause in the listing agreement could make the employee liable for a non-reimbursable brokerage commission.

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.

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.

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. IRS may reimburse for settlement expenses for an unexpired lease, including but not limited to, broker’s fees for obtaining a sublease or charges for advertising if:

Employees must submit Form 8741, Relocation Voucher, requesting reimbursement for expenses of an unexpired lease settlement with an itemization of all expenses claimed including:

This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302–16, 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:

When an employee itemizes miscellaneous expenses, instead of requesting reimbursement of the standard allowance, all receipts are required justifying the employee expenses starting with the first dollar amount incurred. The maximum employees will be reimbursed, regardless of their actual miscellaneous expenses, is one week’s basic gross pay when moving without an immediate family member or two week’s basic gross pay when moving with an immediate family member. Employees should refer to FTR Chapter 302, Relocation Allowances, Part 16.202, Are There Any Restrictions to the Types of Costs We May Cover?, and Part 16.203, What Are Examples of Types of Costs Not Covered by the Miscellaneous Expense Allowance (MEA)?, for restrictions and examples of costs not covered by the miscellaneous expense allowance.

Employees may claim reimbursement for the following miscellaneous expenses:

Employees must submit Form 8741, Relocation Voucher, within 15 calendar days after the completion of each relocation activity, such as a househunting trip, real estate closing, or en route travel. When filing the final voucher for a category of expense, employees must put an "F" in the box immediately preceding the expense being claimed in Block 15.

Employees must include supporting documentation with Form 8741, Relocation Voucher. Depending upon the type of expense employees are claiming, documentation includes, but is not limited to, the following:

When employees undertake a TDY assignment en route to a new official location, their relocation travel to the new post of duty stops upon arrival at the TDY location. Employees must process their TDY expenses in the electronic travel system.

Employees must submit each relocation voucher to the approving official for approval. After approval, the employee or the gaining office forwards the voucher to the *CFO BFC Relocation mailbox for processing.

This section provides IRS guidance and instructions to supplement FTR Chapter 302, Relocation Allowances, Part 302-17, Taxes on Relocation Expenses, Including:

The RITA reimburses an employee for federal, state and local income taxes incurred on taxable relocation travel reimbursements reportable on Form W-2, Wage and Tax Statement. The RITA does not reimburse employees for their Medicare or Social Security taxes on relocation travel expense reimbursements. The RITA is paid in two parts:

The CFO relocation technicians will calculate 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.

The tax withholdings and reimbursements of moving expenses have an effect on the employee’s final tax liability. The taxable reimbursements are considered income to the employee and the additional income may place the employee into a higher tax bracket. Withheld taxes may not be sufficient to cover the additional tax liability for the employee as a result of the higher tax bracket. The employee is responsible for the additional tax liability, but may be reimbursed through the RITA process.

The RITA reimburses the employee for the federal and state tax withholdings on taxable relocation travel expenses. The WTA also reimburses the employee the federal tax withholdings on the WTA itself, since the WTA is also considered income to the employee. The technician calculates and applies the WTA automatically, requiring no change to the voucher filing procedures. When the technician processes a voucher and the reimbursement is subject to federal tax, the technician applies an estimated partial payment of the RITA as an offset to the federal tax withholdings. 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.

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 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.

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.

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. When an employee does not file a claim, the IRS assumes that the RITA amount is zero. Consequently, employees would be required to reimburse the IRS for the amount of the WTA(s) previously paid to them for the related move.

IRS forwards the relocation Form W-2, Wage and Tax Statement, to each eligible employee by January 31. The technician emails the RITA package which includes the instructions along with the necessary forms for filing a RITA claim. IRS sends the W-2 reports and authorization reports by U.S. mail generated through the relocation system. The employee must complete:

A notice is sent to any employee who receives taxable reimbursements for more than one state prior to the mailing of their relocation Form W-2, Wage and Tax Statement. The income is reported to the payroll state as identified by the employee during the year that the expenses were reimbursed.

The WTA could exceed the RITA where the marginal tax rate is less than the supplemental wage withholding. The technician will establish a receivable for the excess WTA, as the IRS overpaid federal taxes on the employee's behalf. However, the result depends on the parameters of the established tax brackets. Employees must notify their technician if they have any change of their tax status such as an amended tax return or tax audit that would change the information provided for calculation of the RITA.

A relocation debt may be established when:

If a debt is established in connection with an employee’s 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.

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:
Beckley Finance Center
ATTN: Debt Collection Unit
P.O. Box 9002
Beckley, WV 25802-9002

The employee must include a Debt Collection Repayment memo with their payment. The form can be found at the CFO website, select: Travel Guidance and then Travel Policy and Procedures.

The employee has the right to dispute a debt or request a waiver if they have documentation or additional information to support their request. See IRM 1.36.4, Administrative Accounting and Financial Reports, Administrative (Non-Tax) Debt Management for details surrounding the debt waiver process and the employee’s appeal rights.

The following forms apply to this program: