Opinion ID: 771439
Heading Depth: 3
Heading Rank: 3

Heading: Return of Excess Requirement

Text: 19 Federal regulations require an employee to return to the employer within a reasonable time any amount paid under the arrangement in excess of the expenses substantiated in accordance with paragraph (e) of this section. 26 C.F.R. 1.62- 2(f)(1). In the case of a per diem allowance, however, a plan will satisfy this requirement provided the allowance is paid at a rate for each day or mile of travel that is reasonably calculated not to exceed the amount of the employee's expenses or anticipated expenses and the employee is required to return to the payor within a reasonable period of time any portion of such allowance which relates to days or miles of travel not substantiated. Id. at 1.62-2(f)(2). 20 The district court found that because Trucks's policy did not require drivers to return the 1% of load revenue directed towards lodging if they chose to sleep in the sleeping berths in the trucks, Trucks failed this third requirement as well. Trucks relies on Rev. Proc. 90-60 7.02, which requires accountable per diem allowances to ask that employees return the per diem allowance for days of travel not substantiated, as opposed to costs not substantiated. Because Trucks reimbursed drivers after the trip, and, therefore, already knew how many days had been substantiated, it argues that it meets this requirement. Again, this is a question for the jury, because it depends on whether Trucks's plan qualifies as a per diem allowance, which depends on its reasonable anticipation of expenses.