Claim for Expenses Incurred in Settlement of Unexpired Lease

An Internal Revenue Service (IRS) certifying officer requested a decision as to whether a claim for reimbursement of expenses incurred in settling an unexpired lease could be certified for payment. An employee of IRS claimed that he was transferred on such short notice that he was unable to give l month's notice as required by an oral agreement the employee had with his landlord. Since the employee was unable to give the required notice, he paid the next month's rent. He then presented a voucher for reimbursement of that rent. Regulations require documentation showing that the lease termination expense was incurred and showing that the employee was obligated by applicable law or the terms of a lease to incur the expenses claimed. Oral leases are recognized in the State of Maryland as being lawful, binding leases. The employee and his landlord both gave written statements attesting to the existence of their agreement. The canceled check provided proof that the expenses were actually incurred. Thus the conditions in the regulations were met, and the voucher may be certified for payment.