Federal Travel Regulation; Taxes on Relocation Expenses, Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA) Eligibility
| Citation | 86 FR 31659 |
| Record Number | 2021-11086 |
| Published date | 15 June 2021 |
| Section | Proposed rules |
| Court | General Services Administration |
Federal Register, Volume 86 Issue 113 (Tuesday, June 15, 2021)
[Federal Register Volume 86, Number 113 (Tuesday, June 15, 2021)]
[Proposed Rules]
[Pages 31659-31665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11086]
=======================================================================
-----------------------------------------------------------------------
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: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The General Services Administration (GSA), in consultation
with the Secretary of the Treasury, is proposing to amend 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.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat at one of the addresses shown below on or before
August 16, 2021 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to FTR Case 2020-302-1:
Regulations.gov: http://www.regulations.gov. Submit comments via the
Federal eRulemaking portal by searching for ``FTR Case 2020-302-1.
Select the link ``Comment Now'' that corresponds with ``FTR Case 2020-
302-1.'' Follow the instructions provided on the screen. Please include
your name, company name (if any), and ``FTR Case 2020-302-1'' on your
attached document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
Instructions: Please submit comments only and cite FTR Case 2020-
302-1, in all correspondence related to this case. Comments received
generally will be posted without change to http://www.regulations.gov,
including any personal and/or business confidential information
provided. To confirm receipt of your comment(s), please check
www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Mr. Rodney (Rick) Miller, Program
Analyst, Office of Government-wide Policy, at 202-501-3822 or
[email protected] for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat Division at 202-501-4755 or [email protected]. Please cite
``FTR Case 2020-302-1.''
SUPPLEMENTARY INFORMATION:
I. Background
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.
To assist with the 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.
However, 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 subchapter 57
or chapter 41 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,
[[Page 31660]]
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) contains an apparent typographical error
as shown here in bold: ``(b) 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 render this statutory
provision meaningless because ``this subchapter of chapter 41'' does
not exist. Accordingly, GSA developed a legislative proposal to correct
the typographical error. However, until such time as a statutory
amendment is made, GSA will implement 5 U.S.C. 5724b(b) as if it reads
``. . . pursuant to this subchapter or chapter 41.'' (emphasis added).
GSA's decision is based on conversations with Congress, and is aimed at
avoiding a literal interpretation of the statute which would produce an
absurd result that is demonstrably at odds with Congressional intent.
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 300-304 (41 CFR Chapters 300-304).
This proposed rule would amend FTR sections pertaining to
eligibility for WTA and RITA in accordance with statutory changes to 5
U.S.C. 5724b. Specifically, this amendment will update relevant tables
in FTR Part 302-3 to include RITA as a mandatory allowance that
agencies must pay or reimburse.
This proposed rule will also adjust 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 will also be updated to remove home marketing incentives for new
appointees who are not entitled to real estate expenses.
Additionally, this proposed rule will indicate, as relevant, where
allowances are 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.) 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 anticipated to be a significant regulatory action and,
therefore, was subject to review under section 6(b) of E.O. 12866,
Regulatory Planning and Review, dated September 30, 1993. This proposed
rule is not anticipated to be a major rule under 5 U.S.C. 804.
III. Congressional Review Act
This proposed rule is not a major rule under 5 U.S.C. 804(2).
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 GSA will submit a
report containing this proposed rule and other required information to
the U.S. Senate, the U.S. House of Representatives, and the Comptroller
General of the United States. A major rule under the CRA cannot take
effect until 60 days after it is published in the Federal Register.
OIRA has determined that this proposed rule is not a ``major rule'' as
defined by 5 U.S.C. 804(2).
IV. Regulatory Flexibility Act
GSA does not expect this proposed 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 federal employees' relocations. The
administrative changes provide further clarification with no 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 proposed rule on
small entities.
GSA will also consider comments from small entities concerning the
existing regulations in subparts affected by the proposed 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.
Krystal J. Brumfield,
Associate Administrator, Office of Government-wide Policy.
Therefore, GSA proposes amending 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 revising the heading of the definition of
``Relocation service company (RSC)'' and the first sentence 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.
* * *
* * * * *
[[Page 31661]]
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 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).
Note 1 to Sec. 302-2.13. 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 OCONUS, renewal agreement travel, or
assignment under 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.
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; 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).
Sec. 302-3.2 [Amended]
0
10. Amend Sec. 302-3.2 by:
0
A. Revise the section heading and the first sentence of the
introductory paragraph.
0
B. Revise 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).
[[Page 31662]]
2. Per diem employee only (part 302-4). 2. Temporary quarters
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. Amend Part 302-3 by revising the heading to Subpart B to read as
follows:
Subpart B--Transferred Employees and Other Relocated Employees
Sec. 302-3.101 [Amended]
0
12. Amend Sec. 302-3.101 by:
0
a. Amending the section heading by adding the words ``or other
relocated employee'' after the words ``transferred employee'';
0
b. Amending the first sentence of the introductory text by adding the
words ``or other relocated employee'' after the words ``transferred
employee''; and
0
c. Amending the second sentence of the introductory text by removing
the word ``transfer'' and adding the word ``relocation'' in its place.
0
d. 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?
* * * * *
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.
[[Page 31663]]
(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 relocation service
(part 302-8 of this chapter). companies (part 302-12 of this
chapter).
5. Home marketing incentives
when transfer is to a non-
foreign area (part 302-14 of
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
expenses or lease termination expenses services company (part 302-12
(part 302-11 of this chapter)\1\. of this 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 from 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.
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). 09 of this chapter).
(2) Transportation & temporary storage (2) Property management
of household goods (part 302-7 of this services (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
expenses or lease termination expenses services company (part 302-12
when transfer is between non-foreign of this 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).
[[Page 31664]]
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.
Sec. 302-3.300 [Amended]
0
13. Amend Sec. 302-3.300 by adding in the introductory paragraph 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 from the introductory paragraph
the words ``item 7 of Tables A and C in'' and adding the words ``Table
G to'' in its place.
0
15. Amend Sec. 302-3.427 by:
0
a. Removing in paragraph (f) the word ``and'' at the end of the
paragraph;
0
b. Removing in paragraph (g) the ``.'' from the end of the paragraph
and adding the `` ; and'' in its place; and
0
c. Adding a new 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. Sec. 302-2.17, 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?
* * * * *
[[Page 31665]]
(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 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 from the first sentence the
words ``a transferred employee in relocating to the new official
station'' 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 in the first sentence the word
``service'' 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, 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'' 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. 2021-11086 Filed 6-14-21; 8:45 am]
BILLING CODE 6820-14-P
