Frank and Barbara Biehl - Page 15




                                       - 15 -                                         
          forth the “business connection” requirement, discussed below, and           
          is in contrast to the loosely interpreted “attributable to a                
          trade or business” language of section 62(a)(1) that applies to             
          business owners, partners in firms, and independent contractors.            
               The scope of section 62(a)(2)(A) is further restricted by              
          section 62(c), as enacted by the Family Support Act of 1988, Pub.           
          L. 100-485, sec. 702, 102 Stat. 2426, effective for tax years               
          beginning after December 31, 1988.  Under section 62(c)(1) and              
          (2), an employee business expense will be treated as covered by a           
          “reimbursement or other expense allowance arrangement” only if              
          the employee is required (1) “to substantiate the expenses                  
          covered by the arrangement to the person providing the                      
          reimbursement” and (2) to repay the person providing the                    
          reimbursement amounts received in “excess of the substantiated              
          expenses covered under the arrangement.”  To satisfy section                
          62(c), the arrangement must be provided under an “accountable               
          plan” as set forth in the regulations issued to implement section           
          62(c).                                                                      






               8(...continued)                                                        
          of 1986, Pub. L. 99-514, sec. 132(b)(1), 100 Stat. 2115, and the            
          Family Support Act of 1988, Pub. L. 100-485, sec. 702, 102 Stat.            
          2426, these employee expenses must satisfy the requirements of              
          sec. 62(a)(2)(A) and (c) of present law regarding reimbursement             
          arrangements and accountable plans.                                         





Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011