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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.
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