Question

An accountable expense reimbursement plan:
- Required the employer only to substantiate expenses with receipts.
- does not require the employer to return any excess reimbursement.
- Required the employee to report business expenses as itemized deductions.
- Required the employee to substantiate expenses with receipts and to return any excess reimbursement.

Answer 1

Answer : An accountable expense reimbursement plan: "- Required the employee to substantiate expenses with receipts and to return any excess reimbursement."

=> Quote : "An accountable plan is a reimbursement or other expense allowance arrangement that satisfies three basic requirements: 1) in business connection; 2) substantiation; and 3) return of excess amounts."

Thus, an accountable plan must require employees to furnish adequate substantiation amount of reimbursed expenses to the employer and return to the employer, within a reasonable period of time, any exceeding amount of the substantiated expenses.