[Claim for Reimbursement for Tax Service and Tax Certificate Fees]

A question was presented as to whether a transferred Department of the Interior employee may be reimbursed for tax service and certificate fees paid to a title company in conjunction with the purchase of a residence at his new duty station. Federal Travel Regulations prohibit the reimbursement of any fees determined to be finance charges under the Truth in Lending Act. The employee contended that: (1) the fees in question were not finance charges since they were paid to a title company, not the lender; and (2) the Internal Revenue Service (IRS) does not characterize either tax service or tax certificate fees as finance charges. GAO stated that the act defines finance charges as fees imposed directly or indirectly by the creditor incident to the extension of credit. GAO found that, since the fees were a prerequisite to obtaining a mortgage, they were finance charges as defined by the act and not reimbursable. Further, GAO noted that IRS practices have no bearing on the statutory provisions or their interpretations. Accordingly, the claim for reimbursement of tax service and certificate fees may not be paid.