41 CFR § 302-12.5 - Income tax consequences for use of an RSC.

---
identifier: "/us/cfr/t41/s302-12.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "41 CFR § 302-12.5 - Income tax consequences for use of an RSC."
title_number: 41
title_name: "Public Contracts and Property Management"
section_number: "302-12.5"
section_name: "Income tax consequences for use of an RSC."
chapter_number: 302
chapter_name: "RELOCATION ALLOWANCES"
subchapter_number: "E"
subchapter_name: "RESIDENCE TRANSACTION ALLOWANCES"
part_number: "302-12"
part_name: "12—USE OF A RELOCATION SERVICES COMPANY"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 5738 and 20 U.S.C. 905(c)."
regulatory_source: "FTR Case 2025-05, 90 FR 56893, Dec. 8, 2025, unless otherwise noted."
cfr_part: "302-12"
---


# 302-12.5 Income tax consequences for use of an RSC.

Employees may incur income taxes on relocation services provided by a relocation services company and paid for by their agency. Section 82 of the Internal Revenue Code states 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. Employees will receive a relocation income tax allowance (RITA) if their agency determines that such expenses are taxable. The Government does not assume responsibility for payment of an employee's taxes.