The reimbursed expenses are adequately substantiated within a reasonable period of time (for example, actual receipts or other similar contemporaneous documentation) andĪny excess reimbursement is returned within a reasonable period of time. The reimbursed expenses have a “business connection” (in other words, are properly incurred in the course of the person’s duties to the organization) The “accountable plan” rules are highly detailed, but in general require that:
Is the organization required to send a Form 1099 to these people to report the expense reimbursements?Īnswer: IRS guidance suggests that reimbursements paid to Board members and volunteers for expenses properly incurred in connection with organization functions are generally not required to be reported on Form 1099 if the expense reimbursements are made pursuant to a reimbursement arrangement that qualifies as an “accountable plan.” This is similar (but not identical) to the rules that apply to employee expense reimbursements and Form W-2 reporting. Only expenses necessary to attend the meeting and event are reimbursed, and receipts are required for reimbursement. Question: I serve on the Board of Directors of a nonprofit organization that reimburses Board members and volunteers for travel and related expenses for certain organization meetings and events.
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