ARE YOUR BUSINESS EXPENSE REIMBURSEMENTS TAXABLE?

How are Expense Reimbursements Taxed by the IRS? If your business reimburses you or your employees for out-of-pocket expenses, the IRS treats such reimbursements as being made under either an accountable plan or a non-accountable plan. If reimbursements are made under a non-accountable plan, they are taxed as income to the employee and the business