Policy: Expenses must be submitted within a reasonable timeframe consistent with Internal Revenue Service (IRS) accountable plan requirements. Expenses submitted outside this timeframe may be treated as taxable income.
Procedures:
Reimbursements After 60 Days
Reimbursements after 60 days
Reimbursements After 60 Days
All travel expenses, regardless of the traveler’s affiliation with UMBC, must be submitted through the official expense report process. Expense reports should be submitted within ten (10) business days following the conclusion of travel, and no later than sixty (60) calendar days after the trip end date. Expense reports submitted after 60 calendar days will be treated as taxable income to the traveler in accordance with IRS accountable plan regulations.
Under IRS Treasury Regulation § 1.274-5(c)(2)(iii)(B), any expense reimbursement that is not substantiated within a reasonable period of time must be treated as paid under a nonaccountable plan. Pursuant to IRS Treasury Regulation § 1.62-2(g)(2)(i), amounts paid under a nonaccountable plan are considered wages and are therefore subject to applicable taxes and payroll withholding.