Travel & Entertainment

Taxation of Late Reports

Background

UC Travel and Entertainment policies require that reports are submitted within 45 days of the trip/event end date. On average, 15% of all reports are submitted late, representing over $9 million of travel spend. This puts the University at risk from external auditors and from the IRS, who may find violations in our Accountable Plan if policies are not adhered to.

What does this mean for you?

Effective July 1, 2017, expense reports not submitted within 1 year of the reported trip/event end date, and cash advances not reconciled within 120 days of the reported trip/event end date will still be reimbursed, but will also be imputed as income through PPS for employees. 

This means the traveler will pay income tax on the amount reimbursed because the report was submitted beyond the time frame allowable by policy.

How to avoid being taxed!

The simplest way to avoid being taxed on a travel and/or entertainment reimbursement expense is to submit your AggieTravel reports within 45 days of your trip/event end date.

Please Note: The time restrictions mentioned above (1 year for reimbursements and 120 days for cash advances) will incrementally decrease over the next two years to bring our campus in line with policy by the start of FY 19/20.

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