SECTION 2. BACKGROUND
Internal Revenue Bulletin 2002-23 · 2026-10-03 edition · updated 2026-10-04 · United States
Q-5. What provisions of the tax law apply when an employer reimburses an employee for employee business expenses?
A-5. The tax rules that apply when an employer reimburses an employee for employee business expenses depend upon whether the reimbursement is made under an accountable plan or nonaccountable plan. An accountable plan is a reimburse
June 10, 2002 1100 2002–23 I.R.B.
Q-14. Will the amount deemed sub- stantiated under this revenue procedure be adjusted for inflation?
A-14. Yes. For calendar years after 2003, the hourly rate will be adjusted annually for inflation under § 1(f)(3), except that the base year for such adjustment will be calendar year 2002 and no adjustment will be made unless the increase is at least one dollar. Any adjustment will be rounded to the nearest dollar. Any adjustment to the rates provided in this revenue procedure will be published annually.
Q-15. May an independent contractor determine deductible expenses under this revenue procedure?
A-15. No. Independent contractors engaged in the trade or business of providing welding services or services as heavy equipment mechanics may not use the deemed substantiation method in this revenue procedure to determine deductible expenses in their trade or business.
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