Tax News from the Senate Finance Committee:
In fiscal years 2003 and 2004 alone you made 265 miscellaneous relocation payments of $10,000 each. That’s $2.65 million, and that doesn’t count the 10 $25,000 payments you made during that same time period, or the relocation income tax allowance used to ensure that the employee receiving the allowance can pocket the full allowance. And employees are not required to show that they actually incurred any expenses that would justify these payments.
The effective date for the legislation is today, with a reporting requirement to allow the IRS to examine previous deals to determine their compliance with even current law. The legislation builds on the Bush administration’s proposal in its budget that also sought to deal with life insurance contracts that inappropriately afforded benefits to private investors that would not otherwise be available without the charity’s involvement.
