Which of the following is a true statement regarding employee business expense

reimbursements?

A

A reimbursement for an employee's meal eaten during a

non-overnight trip on employer business satisfies the

business connection requirement for an accountable plan.

B

If an employee is allowed to keep advances or

reimbursements in excess of those that are substantiated,

only the excess is treated as made under a nonaccountable

plan.

C

Under an accountable plan, an employee must be required

to return any reimbursement in excess of substantiated

business expenses within seven days.

D

Under the simplified (high-low) method for substantiating

travel allowances, an employee is not required to

substantiate the business purpose of the travel.

Exam Question