3. What form does an employee use to report expenses that are fully reimbursed by an employer under an accountable plan?

a. Schedule D

b. Schedule A, Miscellaneous Itemized Deductions

c. Schedule C

d. Form 2106, Employee Business Expenses

e. No form; the expenses are not reported as income to the employee, so they are not deducted on an IRS form in the employee’s tax return.

LO 4.2