In the matter of Richard L. Young-relocation expenses-withholding of income tax, September 30, 1976: This matter arises from a request for an advance decision dated August 3, 1976, from Ms. Orris C. Huet, an authorized certifying officer of the United States Department of Agriculture, regarding a claim from Mr. Richard L. Young for repayment of income taxes withheld from reimbursed relocation expenses in 1975. Mr. Young contends that the decision in Allstate Insurance Co. v. United States, 530 F. 2d 378 (Ct. Cl. 1976), precludes the withholding of Federal income taxes from reimbursement of "moving expenses" paid to Federal employees. Allstate sued in the Court of Claims to recover money it had withheld, for the years 1965 to 1969, from reimbursement of transferred employees' indirect moving costs. The Court held that reimbursement of moving expenses was not compensation for services within the meaning of 26 U.S. Code § 3401 (1964). There were extensive changes in the tax treatment of moving expenses included in the Tax Reform Act of 1969, Public Law 91-172, 83 Stat. 487, 577-580, December 30, 1969. Among other things, section 82 was added to the Internal Revenue Code (26 U.S.C. § 82 (1970)). That section provides that: There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one residence to another residence which is attributable to employment or self-employment. This section applies to taxable years beginning after December 31, 1969. In light of section 82, which specifically defines reimbursement of moving expenses as compensation for services, we do not believe that Allstate Insurance Co. v. United States, supra, has any applicability to 1970 and following tax years. It is based upon a statute that has been amended, specifically dealing with the point covered by the Court. Accordingly, Mr. Young's voucher is returned and may not be certified for payment. In view of certifying officers' statutory right to request and receive ADMINISTRATIVE ERRORS 297 Correction Promotions Failure to carry out agency policy Supervisors of wage board employees Supervisor, whose salary was less than that of wage board employee Annual Accrual Maximum limitation Forfeiture due to administrative error. (See LEAVES OF AB- Promotions Subsequent correction Two Bureau of Mines employees were detailed to higher grade posi- 1507 1443 539 ADMINISTRATIVE PROCEDURES Recommendation is made that options in questioned negotiated Grant of extraordinary contractual relief under Public Law 85-804— Although contractual matters are statutorily exempted from rule ADVERTISING Advertising v. negotiation Advertising when feasible and practicable Notwithstanding desired use of negotiated award method for given Janitorial services None of the exceptions to formal advertising (as set forth in 41 U.S.C. Since negotiating rationale employed by GSA is same as was cited in Negotiation propriety Conduct of negotiations with only firm considered to be in competitive Grant of extraordinary contractual relief under Public Law 85–804— Page 693 1479 1160 693 693 864 787 ADVERTISING-Continued Advertising v. negotiation-Continued Negotiation propriety-Continued posals received under RFP-does not constitute improper use of Public Specifications availability Impossibility of drafting adequate specifications is criterion for au- Procurement Delivery type contract Use of indefinite delivery type of contract to procure advertising AGENCY Overtime policies. (See REGULATIONS, Overtime policies) Promotion procedures. (See REGULATIONS, Promotion procedures) Government Authority Responsibility of persons dealing with agents Since persons who enter contractual relationships with the Govt. Government liability for negligent or erroneous acts Fact that bidder alleges it was told by procuring agency personnel Of private parties Authority Page 1479 1479 1111 356 597 Bid bond Evidence required to establish authority of particular person to bind 422 |