Travel and Entertainment Expenses
3. An employee would like to trade his year-end bonus for an equal amount payable as travel expenses. We've never encountered this situation before; is it legal?
Probably not. It seems as if the employee is trying to evade taxes by having his taxable bonus paid as non-taxable travel reimbursements. Under the accountable plan rules, no travel expenses can be reimbursed on a tax-free basis unless the employee submits receipts and substantiates the time, place, and business purpose of the expense.
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