Tax Issues - Andree is about to graduate college with a...

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Andree is about to graduate college with a management degree. She has been offered a job as a sales representative for a pharmaceutical company. The job will require significant travel and entertainment expenses for which she will be given a salary supplement. What tax issues should Andree consider in her decision? Answer: Andree will definitely need to find out if the pharmaceutical company’s reimbursement plan is classified as an accountable plan or a nonaccountable plan in order to determine if it will be beneficial for her to accept this position or not. In order for a plan to be classified as an accountable plan it must meet the following requirements: Substantiation: Andree must make an adequate record of expenses incurred and provide it to her employer in the form of an expense report or something similar. Return of excess reimbursement: In the event that the employee pays Andree more than the amount of

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