{"id":1525,"date":"2009-08-15T22:59:06","date_gmt":"2009-08-16T02:59:06","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=1525"},"modified":"2009-08-15T22:59:06","modified_gmt":"2009-08-16T02:59:06","slug":"irs-provides-guidance-on-tool-reimbursement-plan-in-plr-200930029","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/08\/irs-provides-guidance-on-tool-reimbursement-plan-in-plr-200930029\/","title":{"rendered":"IRS Provides Guidance on Tool Reimbursement Plan in PLR 200930029"},"content":{"rendered":"<p>In <a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2009\/08\/0930029.pdf\" target=\"_blank\">Private Letter Ruling 200930029<\/a>, the <a href=\"http:\/\/www.irs.gov\/\" target=\"_blank\">Internal Revenue Service (IRS)<\/a> ruled that a taxpayer\u2019s expense reimbursement arrangement (the Plan) satisfied the accountable plan requirements of <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00000062----000-.html\" target=\"_blank\">\u00a762(c)<\/a>. The taxpayer in question expanded its business to include a new division that sells professional tools and equipment and repairs and maintains the tools. The technicians who repair the tools \u201care required to provide and maintain their own tools and equipment for performing the repair and maintenance work.\u201d Under Regulations \u00a71.62-2(c)(1), payments under a reimbursable plan are not taxable if the plan \u201cmeets the requirements of business connection, substantiation, and returning amounts in excess of substantiated expenses.\u201d Since the taxpayer\u2019s plan meets these requirements, \u201call payments made under the Plan in accordance with the terms of the Plan will be excluded from the Technician\u2019s income and will not be wages subject to the withholding and payment of employment taxes.\u201d Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have any further questions on accountable plans.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Private Letter Ruling 200930029, the Internal Revenue Service (IRS) ruled that a taxpayer\u2019s expense reimbursement arrangement (the Plan) satisfied the accountable plan requirements of \u00a762(c). The taxpayer in question expanded its business to include a new division that sells professional tools and equipment and repairs and maintains the tools. The technicians who repair the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[321,1002,49],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1525"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=1525"}],"version-history":[{"count":2,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1525\/revisions"}],"predecessor-version":[{"id":1528,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1525\/revisions\/1528"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=1525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=1525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=1525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}