Rule2021-27637
Federal Travel Regulation; Taxes on Relocation Expenses, Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA) Eligibility
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 28, 2021
Effective
December 28, 2021
Issuing agencies
General Services Administration
Abstract
The General Services Administration (GSA), in consultation with the Secretary of the Treasury, is amending the Federal Travel Regulation (FTR) to authorize Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA) to all individuals who receive relocation allowances paid by the Federal Government. This amendment is in accordance with legislative changes to GSA's statutory authority for taxes on reimbursements for travel, transportation, and relocation expenses as enacted in the National Defense Authorization Act for Fiscal Year 2020, and as further amended by the National Defense Authorization Act for Fiscal Year 2021.
Full Text
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<title>Federal Register, Volume 86 Issue 246 (Tuesday, December 28, 2021)</title>
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[Federal Register Volume 86, Number 246 (Tuesday, December 28, 2021)]
[Rules and Regulations]
[Pages 73678-73684]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27637]
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 300-3, 302-2, 302-3, 302-12, 302-15, and 302-17
[FTR Case 2020-302-1; Docket No. 2020-0019, Sequence 1]
RIN 3090-AK31
Federal Travel Regulation; Taxes on Relocation Expenses,
Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance
(RITA) Eligibility
AGENCY: Office of Government-wide Policy (OGP), General Services
Administration (GSA).
ACTION: Final rule.
-----------------------------------------------------------------------
[[Page 73679]]
SUMMARY: The General Services Administration (GSA), in consultation
with the Secretary of the Treasury, is amending the Federal Travel
Regulation (FTR) to authorize Withholding Tax Allowance (WTA) and
Relocation Income Tax Allowance (RITA) to all individuals who receive
relocation allowances paid by the Federal Government. This amendment is
in accordance with legislative changes to GSA's statutory authority for
taxes on reimbursements for travel, transportation, and relocation
expenses as enacted in the National Defense Authorization Act for
Fiscal Year 2020, and as further amended by the National Defense
Authorization Act for Fiscal Year 2021.
DATES: Effective date: This final rule is effective on December 28,
2021. Applicability date: This final rule is applicable to individuals
who are authorized reimbursement for relocation expenses under the FTR
and who receive some or all reimbursements, direct payments, or
indirect payments on or after January 1, 2018.
FOR FURTHER INFORMATION CONTACT: Mr. Rodney (Rick) Miller, Program
Analyst, Office of Government-wide Policy, at 202-501-3822 or
<a href="/cdn-cgi/l/email-protection#64160b000a011d4a090d08080116240317054a030b12"><span class="__cf_email__" data-cfemail="196b767d777c6037747075757c6b597e6a78377e766f">[email protected]</span></a> for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat Division at 202-501-4755 or <a href="/cdn-cgi/l/email-protection#c88f9b899aadaf9badab88afbba9e6afa7be"><span class="__cf_email__" data-cfemail="7d3a2e3c2f181a2e181e3d1a0e1c531a120b">[email protected]</span></a>. Please cite
``FTR Case 2020-302-1.''
SUPPLEMENTARY INFORMATION:
I. Background
GSA published a proposed rule in the Federal Register on June 15,
2021 (86 FR 31659). The rule proposed to amend the FTR sections
pertaining to eligibility for WTA and RITA in accordance with statutory
changes to 5 U.S.C. 5724b, update relevant FTR part 302-3 tables to
include RITA as a mandatory allowance that agencies must pay or
reimburse, and adjust the relocation tables for certain mandatory and
discretionary relocation entitlements depending on the individual's
type of movement.
The public had 60 calendar days to comment on the proposed rule.
GSA received no comments opposing the amendment and one comment
supporting its adoption. GSA did not make any changes to this final
rule based on the supporting comment.
Federal agencies authorize relocation entitlements to those listed
at FTR Sec. 302-1.1 and those assigned under the Government Employees
Training Act (GETA) (5 U.S.C. Chapter 41).
Public Law (Pub. L.) 115-97, known as the ``Tax Cuts and Jobs Act
of 2017,'' suspended qualified moving expense deductions along with the
exclusion for employer reimbursements and payments of moving expenses
effective January 1, 2018, for tax years 2018 through 2025, therefore
making almost all relocation entitlements subject to additional tax
liability.
Agencies are authorized to pay WTA and RITA to cover
``substantially all'' of the increased tax liability resulting from
receipt of the relocation expense reimbursements either paid directly
or indirectly. However, in the version of 5 U.S.C. 5724b immediately
preceding the passage of Section 1114 of the ``National Defense
Authorization Act for Fiscal Year 2020'' (Pub. L. 116-92) (``the
Act''), WTA and RITA were available only to employees ``transferred''
in the interest of the Government from one official station or agency
to another for permanent duty.
Previously, new appointees (including political appointees), Senior
Executive Service (SES) employees performing a ``last move home'',
employees returning from an overseas assignment for the purpose of
separating from Government service, and those assigned under GETA were
not eligible for WTA and RITA as such individuals were not
``transferred'' in the interest of the Government from one official
station or agency to another for permanent duty. The suspension of
qualified moving expense deductions in Public Law 115-97 substantially
increased the tax liability of these individuals, which could not be
reimbursed through WTA or RITA.
Section 1114 of the Act amended 5 U.S.C. 5724b to expand
eligibility for WTA and RITA beyond ``transferred'' employees to
include all individuals whose travel, transportation, or relocation
expenses are reimbursed or furnished in kind pursuant to chapter 57,
subchapter II or chapter 41, both of title 5, U.S.C. These individuals
include, among others, those not previously eligible for WTA and RITA,
e.g., new appointees (including political appointees), employees
returning from an overseas assignment for the purpose of separation
from Government service, SES employees eligible for ``last move home''
entitlements, and those assigned under GETA. The Act also includes a
retroactive effective date to January 1, 2018, to allow those
individuals who received taxable travel, transportation, or relocation
allowances since January 1, 2018, to now submit a RITA claim for the
additional tax liability.
Of note, 5 U.S.C. 5724b(b) contained an apparent typographical
error as shown here in bold: ``For purposes of this section, the term
`travel, transportation, or relocation expenses' means all travel,
transportation, or relocation expenses reimbursed or furnished in kind
pursuant to this subchapter of chapter 41.'' (emphasis added). A
literal implementation of the text would have rendered this statutory
provision meaningless because ``this subchapter of chapter 41'' does
not exist. Accordingly, GSA developed a legislative proposal to correct
the typographical error. Until the statutory amendment was made, GSA
implemented 5 U.S.C. 5724b(b) as if it read ``. . . pursuant to this
subchapter or chapter 41.'' (emphasis added). GSA's decision was based
on conversations with Congress, and aimed at avoiding a literal
interpretation of the statute which would have produced an absurd
result that is demonstrably at odds with Congressional intent. GSA's
legislative proposal resulted in section 1121 of the ``William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year 2021''
(Pub. L. 116-283) which amended 5 U.S.C. 5724b(b) to correct the
typographical error. The amendments made to 5724b(b) by section 1121
are retroactively effective as if included in the enactment of section
1114 of the Act.
Pursuant to 5 U.S.C. 5738, the Administrator of General Services is
mandated to prescribe necessary regulations regarding Federal employees
who relocate in the interest of the Government. The overall
implementing authority is the FTR, codified in title 41 of the Code of
Federal Regulations, chapters 300 through 304 (41 CFR chapters 300
through 304).
This final rule amends FTR sections pertaining to eligibility for
WTA and RITA in accordance with statutory changes to 5 U.S.C. 5724b.
Specifically, this amendment updates relevant tables in FTR Part 302-3
to include RITA as a mandatory allowance that agencies must pay or
reimburse.
This final rule also adjusts the relocation tables at Sec. Sec.
302-3.2 and 302-3.101 to update certain mandatory and discretionary
relocation entitlements depending on the individual's type of movement.
Updates to the tables include, but are not limited to, adding use of a
relocation services company, home marketing incentives, and temporary
quarters subsistence expense (TQSE) as discretionary allowances to,
from, or between non-foreign areas. The tables are also updated to
remove home marketing incentives for new appointees who are not
entitled to real estate expenses.
Additionally, this final rule indicates, as relevant, where
allowances are
[[Page 73680]]
intended to apply more broadly to other relocating individuals (e.g.,
appointments, reassignments, separations, and last move(s) home), in
addition to transferred employees.
II. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives, and if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, is not
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
III. Congressional Review Act
Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996 (codified at 5 U.S.C. 801-808), also known as the
Congressional Review Act or CRA, generally provides that before a rule
may take effect, the agency promulgating the rule must submit a rule
report, which includes a copy of the rule, to each House of the
Congress and to the Comptroller General of the United States. The
Office of Information and Regulatory Affairs (OIRA) has determined that
this rule is not a major rule under 5 U.S.C. 804(2), therefore, GSA did
not submit a rule report.
IV. Regulatory Flexibility Act
GSA does not expect this final rule to have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it
applies only to Federal agencies and employees and it affects less than
one percent of all relocations authorized under FTR part 302. The
administrative changes to the FTR provide further clarification on
existing statutory changes with no additional impact to agencies.
Therefore, an Initial Regulatory Flexibility Analysis has not been
performed. GSA invites comments from small business concerns and other
interested parties on the expected impact of this final rule on small
entities.
GSA will also consider comments from small entities concerning the
existing regulations in subparts affected by the final rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FTR Case 2020-302-1),
in correspondence.
V. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FTR do not impose recordkeeping or information collection
requirements, or the collection of information from offerors,
contractors, or members of the public that require the approval of the
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq.
List of Subjects in 41 CFR Parts 300-3, 302-2, 302-3, 302-12, 302-
15, and 302-17
Government employees, Income taxes, Travel and transportation
expenses.
Robin Carnahan,
Administrator, General Services Administration.
Therefore, GSA amends 41 CFR parts 300-3, 302-2, 302-3, 302-12,
302-15, and 302-17 as set forth below:
PART 300-3--GLOSSARY OF TERMS
0
1. The authority citation for 41 CFR part 300-3 continues to read as
follows:
Authority: 5 U.S.C. 5707; 40 U.S.C. 121(c); 49 U.S.C. 40118; 5
U.S.C. 5738; 5 U.S.C. 5741-5742; 20 U.S.C. 905(a); 31 U.S.C. 1353;
E.O 11609, as amended, 3 CFR, 1971-1975 Comp., p. 586, Office of
Management and Budget Circular No. A-126, revised May 22, 1992.
0
2. Amend Sec. 300-3.1 by removing the definition of ``Relocation
service company (RSC)'' and adding in its place the definition of
``Relocation services company (RSC)'' to read as follows:
Sec. 300-3.1 What do the following terms mean?
* * * * *
Relocation services company (RSC)--A third-party supplier under
contract with an agency to assist an eligible individual who relocates.
Services may include: Homesale programs, home inspection, home
marketing assistance, home finding assistance, property management
services, shipment and storage of household goods, voucher review and
payment, relocation counseling, and similar items.
* * * * *
PART 302-2--EMPLOYEES ELIGIBILITY REQUIREMENTS
0
3. The authority citation for 41 CFR part 302-2 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).
0
4. Revise Sec. 302-2.1 to read as follows:
Sec. 302-2.1 When may I begin my relocation?
You may begin your relocation only after your agency has approved
your travel authorization (TA) in writing (paper or electronic).
0
5. Revise Sec. 302-2.13 to read as follows:
Sec. 302-2.13 What is a service agreement?
(a) A service agreement is a written and signed agreement between
you and your agency. The service agreement states that you will remain
in the service of the Government, after you have relocated, for a
period of time as specified in Sec. 302-2.14. A service agreement must
also include the duplicate reimbursement disclosure statement specified
in Sec. Sec. 302-2.21, 302-2.22, and 302-2.100(g).
(b) A service agreement is not required for a ``last move home''
relocation, a temporary change of station, or separation from
Government service.
0
6. Revise Sec. 302-2.14 to read as follows.
Sec. 302-2.14 Am I required to sign a service agreement for an
appointment or transfer CONUS or Outside the Continental United States
(OCONUS), renewal agreement travel, or assignment under the Government
Employees Training Act (GETA), and what is the minimum period of
service?
Yes, you are required to sign a service agreement for appointment
or transfer CONUS or OCONUS, renewal agreement travel, or assignment
under GETA. The minimum periods of service are:
(a) Within CONUS for a period of service of not less than 12 months
following the effective date of your appointment or transfer;
(b) OCONUS for an agreed upon period of service of not more than 36
months or less than 12 months following the effective date of your
appointment or transfer;
(c) Department of Defense Overseas Dependent School System teachers
for a period of not less than one school year as determined under
chapter 25 of Title 20, United States Code;
(d) For renewal agreement travel, a period of not less than 12
months from the date of return to the same or different overseas
official station; and
(e) For assignment under GETA, not less than three times the length
of the training period as prescribed by the head of your agency.
0
7. Revise Sec. 302-2.17 to read as follows:
[[Page 73681]]
Sec. 302-2.17 Must I sign a service agreement for a ``last move
home'' relocation or separation from Government service?
No, you do not need to sign a service agreement for a ``last move
home'' relocation or separation from Government service.
0
8. Revise Sec. 302-2.101 to read as follows:
Sec. 302-2.101 When may we authorize reimbursement for relocation
expenses?
You may authorize reimbursement for relocation expenses:
(a) When you have determined that an eligible individual's
relocation is in the best interest of the Government as specified in
Sec. 302-1.1 of this chapter; and
(b) Only after an eligible individual has signed a service
agreement to remain in service for the period specified in Sec. 302-
2.14.
PART 302-3--RELOCATION ALLOWANCE BY SPECIFIC TYPE
0
9. The authority citation for 41 CFR part 302-3 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).
0
10. Amend Sec. 302-3.2 by:
0
a. Revising the section heading and the first sentence of the
introductory text; and
0
b. Revising Tables A and B.
The revisions read as follows:
Sec. 302-3.2 As a new appointee or student trainee what relocation
expenses may my agency pay or reimburse me for incident to an
assignment to my first official station?
As a new appointee or student trainee assigned to your first
official station, your agency may pay or reimburse you the relocation
expenses indicated for the type of assignment in Tables A and B of this
section. * * *
Table A--Assigned to First Official Station in the Continental United
States (CONUS)
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation of employee & 1. Shipment of privately owned
immediate family member(s) (part 302-4 vehicle (POV) (part 302-9 of
of this chapter). this chapter).
2. Per diem for employee only (part 302- 2. Use of a relocation services
4 of this chapter). company (part 302-12 of this
chapter).
3. Transportation & temporary storage ...............................
of household goods (part 302-7 of this
chapter).
4. Extended storage of household goods ...............................
(part 302-8 of this chapter)\1\.
5. Transportation of a mobile home or ...............................
boat used as a primary residence in
lieu of the transportation of
household goods (part 302-10 of this
chapter).
6. Relocation income tax allowance ...............................
(RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 4: Only when assigned to a designated
isolated official station in CONUS.
Table B--Assigned to First Official Station Outside the Continental
United States (OCONUS)
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation of employee & 1. Shipment of privately owned
immediate family member(s) (part 302-4 vehicle (POV) (part 302-9 of
of this chapter). this chapter).
2. Per diem employee only (part 302-4 2. Temporary quarters
of this chapter). subsistence expense (TQSE) is
not authorized in a foreign
area; however, you may be
entitled to the following
under the Department of State
Standardized Regulations
(Government Civilians-Foreign
Areas) which is available from
the Superintendent of
Documents, Washington, DC
20402.
(a) Foreign Transfer Allowance
(FTA) (Subsistence Expense)
for quarters occupied
temporarily before departure
from the 50 states or the
District of Columbia for an
official station in a foreign
area incident to a permanent
change of station and travel
to first official station
overseas.
(b) Temporary quarters
subsistence allowance (TQSA)
when a transfer is authorized
to a foreign area.
(c) The miscellaneous expense
portion of the FTA is
authorized incident to first
official station travel to a
foreign area.
3. Transportation & temporary storage 3. Use of a relocation services
of household goods (part 302-7 of this company (part 302-12 of this
chapter). chapter).
4. Extended storage of household goods ...............................
(part 302-8 of this chapter).
5. Relocation income tax allowance ...............................
(RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
0
11. Revise the heading for subpart B to read as follows:
Subpart B--Transferred Employees and Other Relocated Employees
0
12. Amend Sec. 302-3.101 by:
0
a. Revising the section heading;
0
b. In the introductory text:
0
i. Adding to the first sentence the words ``or other relocated
employee'' after the words ``transferred employee''; and
0
ii. Removing the word ``transfer'' from the second sentence and adding
the word ``relocation'' in its place; and
0
c. Revising Tables A, B, C, D, F, G, and I.
The revisions read as follows:
Sec. 302-3.101 As a transferred employee or other relocated employee
what relocation allowances must my agency pay or reimburse to me?
* * * * *
[[Page 73682]]
Table A--Transfer Between Official Stations in the Continental United
States (CONUS)
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for 1. Househunting per diem &
employee & immediate family member(s) transportation, employee &
(part 302-4 of this chapter). spouse only (part 302-5 of
this chapter).
2. Miscellaneous moving expense (part 2. Temporary quarters
302-16 of this chapter). subsistence expense (TQSE)
(part 302-6 of this chapter).
3. Sell or buy residence transactions 3. Shipment of privately owned
or lease termination expenses (part vehicle (POV) (part 302-9 of
302-11 of this chapter). this chapter).
4. Transportation & temporary storage 4. Use of a relocation services
of household goods (part 302-7 of this company (part 302-12 of this
chapter). chapter).
5. Extended storage of household goods 5. Property management services
(part 302-8 of this chapter) \1\. (part 302-15 of this chapter).
6. Transportation of a mobile home or 6. Home marketing incentives
boat used as a primary residence in (part 302-14 of this chapter).
lieu of the transportation of
household goods (part 302-10 of this
chapter) \ 2\.
7. Relocation income tax allowance ...............................
(RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 5: Only when assigned to a designated
isolated official station in CONUS.
\2\ Note to Column 1, Item 6: Mobile homes may be shipped within CONUS,
within Alaska, and through Canada en route between Alaska and CONUS or
through Canada between one CONUS point and another (e.g., between
Buffalo, NY, and Detroit, MI).
Table B--Transfer From CONUS to an Official Station Outside the
Continental United States (OCONUS)
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for 1. Temporary quarters
employee & immediate family member(s) subsistence expense (TQSE)
(part 302-4 of this chapter). when transfer is to a non-
foreign area. In foreign areas
you may be entitled to the
following under the Department
of State Standardized
Regulations (DSSR) (Government
Civilians-Foreign Areas):
(a) A Foreign Transfer
Allowance (FTA) for quarters
occupied temporarily before
departure from the 50 states
or the District of Columbia
for an official station in a
foreign area incident to a
permanent change of station
and travel to first official
station overseas.
(b) Temporary quarters
subsistence allowance (TQSA).
2. Miscellaneous expense allowance 2. Property management services
(part 302-16 of this chapter). (part 302-15 of this chapter).
3. Transportation & temporary storage 3. Shipment of a privately
of household goods (part 302-7 this owned vehicle (part 302-9 of
chapter). this chapter).
4. Extended storage of household goods 4. Use of a relocation services
(part 302-8 of this chapter). company (part 302-12 of this
chapter).
5. Sell & buy residence transaction 5. Home marketing incentives
expenses or lease termination expenses when transfer is to a non-
when transfer is to a non-foreign area foreign area (part 302-14 of
(part 302-11 of this chapter). this chapter).
6. Relocation income tax allowance 6. Househunting per diem &
(RITA) (part 302-17 of this chapter). transportation, employee &
spouse only when transfer is
to a non-foreign area (part
302-5 of this chapter).
------------------------------------------------------------------------
Table C--Transfer From OCONUS Official Station to an Official Station in
CONUS
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for 1. Shipment of a privately
employee & immediate family member(s) owned vehicle (part 302-9 of
(part 302-4 of this chapter). this chapter).
2. Miscellaneous expense allowance 2. Temporary quarters
(part 302-16 of this chapter). subsistence expense (TQSE)
(part 302-6 of this
chapter).\2\
3. Sell & buy residence transaction 3. Use of a relocation services
expenses or lease termination expenses company (part 302-12 of this
(part 302-11 of this chapter) \1\. chapter).
4. Transportation & temporary storage 4. Home marketing incentives
of household goods (part 302-7 of this when transfer is from a non-
chapter). foreign area (part 302-14 of
this chapter).
5. Extended storage of household goods ...............................
only when assigned to a designated
isolated official station in CONUS
(part 302-8 of this chapter).
6. Relocation income tax allowance ...............................
(RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 3: Allowed when old and new official stations
are located in the United States. Also allowed when instead of being
returned to the former official station in the United States, an
employee is transferred in the interest of the Government to a
different official station in the United States than the official
station from which transferred when assigned to the foreign official
station.
\2\ Note to Column 2, Item 2: A TQSA under the DSSR may be authorized
preceding final departure subsequent to the necessary vacating of
residence quarters.
[[Page 73683]]
Table D--Transfer Between OCONUS Official Stations
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for 1. Shipment of a privately
employee & immediate family member(s) owned vehicle (POV) (part 302-
(part 302-4 of this chapter). 9 of this chapter).
2. Transportation & temporary storage 2. Property management services
of household goods (part 302-7 of this (part 302-15 of this chapter).
chapter).
3. Miscellaneous expense allowance 3. Househunting per diem &
(part 302-16 of this chapter). transportation for employee &
spouse only when transfer is
between non-foreign areas
(part 302-5 of this chapter).
4. Extended storage of household goods 4. Temporary quarters
(part 302-8 of this chapter). subsistence expense (TQSE)
when transfer is to or between
non-foreign areas (part 302-6
of this chapter).\1\
5. Sell & buy residence transaction 5. Use of a relocation services
expenses or lease termination expenses company (part 302-12 of this
when transfer is between non-foreign chapter).
areas (part 302-11 of this chapter).
6. Relocation income tax allowance 6. Home marketing incentives
(RITA) (part 302-17 of this chapter). when transfer is between non-
foreign areas (part 302-14 of
this chapter).
------------------------------------------------------------------------
\1\ Note to Column 2, item 4: TQSA may be authorized under the DSSR.
* * * * *
Table F--Return From OCONUS Official Station to Place of Actual
Residence for Separation
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee & 1. Shipment of a privately
immediate family member(s) (part 302-4 owned vehicle (POV) (part 302-
of this chapter). 9 of this chapter).
2. Per diem for employee only (part 302- 2. Use of a relocation services
4 of this chapter). company (part 302-12 of this
chapter).
3. Transportation & temporary storage ...............................
of household goods (part 302-7 of this
chapter).
4. Relocation income tax allowance ...............................
(RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
Note to Table F: This table also applies to an employee returning to the
CONUS to transfer to a new duty station after completing a tour of
duty OCONUS if relocation expenses have not been authorized to the new
duty station. In that case, and unless otherwise agreed to, the
employee is only eligible for return expenses from the OCONUS duty
station to the employee's actual residence, payable by the losing
agency.
Table G--Last Move Home for SES Career Appointees Upon Separation from
Government Service
------------------------------------------------------------------------
Column 2--Relocation allowances
Column 1--Relocation allowances that that agency has discretionary
agency must pay or reimburse authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee & 1. Shipment of privately owned
immediate family member(s) (part 302-4 vehicle (POV) (part 302-9,
of this chapter). subpart B of this chapter).
2. Per diem for employee only (part 302- 2. Use of a relocation services
4 of this chapter). company (part 302-12 of this
chapter).
3. Transportation & temporary storage ...............................
of household goods (part 302-7 of this
chapter).
4. Transportation of a mobile home or ...............................
boat used as a primary residence in
lieu of the transportation of
household goods (part 302-10 of this
chapter).
5. Relocation income tax allowance ...............................
(RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
* * * * *
Table I--Assignment Under the Government Employees Training Act
[5 U.S.C. 4109] \1\
------------------------------------------------------------------------
-------------------------------------------------------------------------
1. Transportation of employee & immediate family member(s) (part 302-4
of this chapter).
2. Per Diem for employee (part 302-4 of this chapter).
3. Movement of household goods & temporary storage (part 302-7 of this
chapter).
4. Relocation income tax allowance (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Table I: The allowances listed in Table I may be authorized
in lieu of per diem or actual expense allowances. This is not
considered a permanent change of station.
[[Page 73684]]
Sec. 302-3.300 [Amended]
0
13. Amend Sec. 302-3.300 by adding the words ``(see Table F in Sec.
302-3.101 for a summary of allowances)'' after the word ``goods''.
Sec. 302-3.306 [Amended]
0
14. Amend Sec. 302-3.306 by removing the words ``item 7 of Tables A
and C in Sec. 302.3.101'' and adding the words ``Table G to Sec. 302-
3.101'' in its place.
0
15. Amend Sec. 302-3.427 by:
0
a. Removing the word ``and'' at the end of the paragraph (f);
0
b. Removing the period from the end of the paragraph (g) and adding ``;
and'' in its place; and
0
c. Adding paragraph (h).
The addition reads as follows:
Sec. 302-3.427 What relocation allowances may my agency pay when I am
permanently assigned to my temporary official station?
* * * * *
(h) Relocation income tax allowance (RITA) under part 302-17 of
this chapter.
0
16. Revise Sec. 302-3.503 to read as follows:
Sec. 302-3.503 Must we require employees to sign a service agreement?
Yes, you must require employees to sign a service agreement if the
employee is receiving reimbursement for relocation travel expenses,
except as provided in Sec. 302-2.17 of this chapter and Sec. Sec.
302-3.300 and 302-3.410.
0
17. Amend Sec. 302-3.505 by revising paragraphs (a) through (d) and
adding paragraph (e) to read as follows:
Sec. 302-3.505 How long must we require an employee to agree to the
terms of a service agreement?
* * * * *
(a) Within CONUS for a period of service of not less than 12 months
following the effective date of appointment or transfer;
(b) OCONUS for an agreed upon period of service of not more than 36
months or less than 12 months following the effective date of
appointment or transfer;
(c) Department of Defense Overseas Dependent School System teachers
for a period of not less than one school year as determined under
chapter 25 of Title 20, United States Code;
(d) For renewal agreement travel, a period of not less than 12
months from the date of return to the same or different overseas
official station; and
(e) For assignment under the Government Employees Training Act
(GETA), not less than three times the length of the training period as
prescribed by the head of the agency.
PART 302-12--USE OF A RELOCATION SERVICES COMPANY
0
18. The authority citation for 41 CFR part 302-12 continues to read as
follows:
Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).
Sec. 302-12.100 [Amended]
0
19. Amend Sec. 302-12.100 by removing the words ``a transferred
employee in relocating to the new official station'' from the first
sentence and adding the words ``an employee who relocates'' in its
place.
PART 302-15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES
0
20. The authority citation for 41 CFR part 302-15 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
Sec. 302-15.13 [Amended]
0
21. Amend Sec. 302-15.13 by removing the word ``service'' in the first
sentence and adding the word ``services'' in its place.
PART 302-17--TAXES ON RELOCATION EXPENSES
0
22. The authority citation for 41 CFR part 302-17 continues to read as
follows:
Authority: 5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
0
23. Amend Sec. 302-17.1 by revising the definition for ``Relocation
income tax allowance (RITA)'' to read as follows:
Sec. 302-17.1 What special terms apply to this part?
* * * * *
Relocation income tax allowance (RITA) means the payment to
individuals to cover the difference between the withholding tax
allowance (WTA), if any, and the actual income tax liability incurred
by the individual, and such individual's spouse (if filing jointly), as
a result of their taxable relocation benefits authorized pursuant to
this chapter. RITA is paid whenever the actual income tax liability
exceeds the WTA and applies to any travel, transportation, and
relocation expenses reimbursed or furnished in kind pursuant to chapter
57, subchapter II of title 5 U.S.C. and 5 U.S.C. chapter 41.
* * * * *
Sec. 302-17.3 [Amended]
0
24. Amend Sec. 302-17.3 by removing the words ``transferred
employees'' and adding the words ``employees or individuals eligible
for relocation expense allowances under Sec. 302-1.1 of this chapter''
in its place.
0
25. Amend Sec. 302-17.5 by revising the second sentence and adding a
third sentence to read as follows:
Sec. 302-17.5 Who is eligible for the WTA and the RITA?
* * * You are eligible for the WTA and the RITA if you are
relocating in the interest of the Government, and your agency's
reimbursements to you for relocation expenses result in you being
liable for additional income taxes. Eligibility for WTA and RITA
includes, among others, transferred employees, appointments (new or
political), assignments under the Government Employees Training Act,
and those returning from an overseas assignment for the purpose of
separation from Government service.
* * * * *
Sec. 302-17.6 [Removed]
0
26. Remove Sec. 302-17.6.
Sec. Sec. 302-17.7 through 302-17.13 [Redesignated as Sec. Sec. 302-
17.6 through 302-17.12]
0
27. Redesignate Sec. Sec. 302-17.7 through 302-17.13 as Sec. Sec.
302-17.6 through 302-17.12.
[FR Doc. 2021-27637 Filed 12-27-21; 8:45 am]
BILLING CODE 6820-14-P
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</html>Indexed from Federal Register on December 28, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.