If employee expenses are submitted for reimbursement more than 60 days after the expense is incurred, the reimbursement may be taxable and appropriate withholdings would need to be made.

For a detailed explanation of this issue, see IRS Publication 463, “Travel, Entertainment, Gift, and Car Expenses” found on the IRS website at:


Date this Avoiding Pitfall was most recently published: 09/25/2020