Claim for Repayment of Taxes Withheld From Relocation Expenses Reimbursement

An employee's claim for repayment of income taxes withheld from reimbursed relocation expenses in 1975 was questioned. A 1976 court decision holding that reimbursement of moving expenses was not compensation for services dealt with tax years 1965-1969 and was not applicable to payments starting in 1970 since the Tax Reform Act of 1969 provides for inclusion in gross income of amounts received as reimbursement for moving expenses.