Non-accountable Plan

Non-accountable Plan means:
a reimbursement or expense allowance arrangement that does not meet the requirements for an accountable plan. An employee expense reimbursement plan under which employees are not required to substantiate expenses. Excess reimbursements that an employee fails to repay and the reimbursement of nondeductible expenses are also treated as paid under a nonaccountable plan. An employee's expenses that are reimbursed by an employer under a nonaccountable plan are included in the employee's gross income. The employee may be able to deduct actual expenses as a miscellaneous itemized deduction on Schedule A of Former Federal Tax Form (check here if the Form is current) 1040.

See Tax Forms in the Encyclopedia.