Nonaccountable plan is a
reimbursement or expense allowance arrangement between an employer and an
employee, like an accountable plan's
per diem reimbursement,
except it does not meet one or more of the three rules listed under
accountable plans.
In addition, even if an airline pilot or flight attendant’s employer has an
accountable plan, the following payments will be treated as being paid under a
nonaccountable plan:
-
Excess reimbursements the
airline employee fails to return to his or her aviation employer, and
-
Reimbursement of
nondeductible expenses related to the airline pilot or flight attendant's
aviation employer’s business.
An arrangement that repays
pilots and flight attendants for aviation-related
employee
business expenses by reducing the amount reported their wages, salary, or
other pay will be treated as a nonaccountable plan.