An accountable plan is an
employer’s reimbursement or allowance arrangement for reimbursement of an
employee’s travel
expenses or M&IE expenses. To be qualified as an accountable plan,
the arrangement must include all of the following rules.
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Your expenses must
have a business connection – that is, you must have paid or incurred deductible
expenses while performing services as an airline flight crew.
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You must adequately
account to your employer for these expenses within a reasonable period of time.
-
You must return any
excess reimbursement or allowance within a reasonable period of time.
Per diem reimbursements
for those in the aviation field satisfy these tax requirements in most situations. Reimbursements that do not meet those requirements are likely to be considered part of a nonaccountable plan
