KPMG report: Taxation of paid or reimbursed travel expenses and determination of employee’s tax home
Issues relating to whether paid or reimbursed travel expenses may be taxable or nontaxable to employees
Issues relating to whether paid or reimbursed travel expenses may be taxable or nontaxable
In response to the coronavirus (COVID-19) pandemic, organizations across the globe experienced a workplace transformation by expanding and enabling remote work practically overnight. The rise in flexible worksite arrangements presents a challenge to employers that provide them and pay or reimburse employees for business travel because the rules for when reimbursed expenses related to business travel can be excluded from an employee’s compensation are complex, often outdated, and derived from court decisions with very specific facts and circumstances.
Read a May 2023 report* [PDF 431 KB] prepared KPMG LLP tax professionals that discusses the issues relating to whether paid or reimbursed travel expenses may be taxable or nontaxable to employees, focusing in particular on the analysis of the location of an employee’s tax home, including whether a personal residence may be considered a tax home.
*This article originally appeared in Tax Notes Federal (May 1, 2023) and is provided with permission.
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