§302-17.60. Definition of the terms “Year 1” and “Year 2” used in the two-year RITA process.
41 C.F.R. § 302-17.60
Year 1 is the calendar year in which the agency reimburses the employee for a specific expense, provides an allowance, or pays a vendor directly. If an employee's reimbursements, allowances, and/or direct payments to vendors occur in more than one calendar year, the employee will have more than one Year 1.
Year 2 is the calendar year in which the employee submits their RITA claim and the agency pays the RITA.
In most cases—
For every Year 1 an employee will have a corresponding Year 2;
Every Year 2 immediately follows a Year 1; and
Year 2 is the year in which the employee files a tax return reflecting the remaining tax liability for taxable reimbursement(s), allowance(s), and/or direct payments to vendors in each Year 1.
Notes, amendments, and revision history
Authority
Authority: 5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586.
Source
Source: FTR Case 2025-05, 90 FR 56893, Dec. 8, 2025, unless otherwise noted.