---
kind: "section"
citation: "41 C.F.R. § 302-17.60"
title: "41"
number: "302-17.60"
heading: "Definition of the terms “Year 1” and “Year 2” used in the two-year RITA process."
url: "https://uscodex.org/cfr/41/302-17.60"
---

# §302-17.60. Definition of the terms “Year 1” and “Year 2” used in the two-year RITA process.

- (a) 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.
- (b) Year 2 is the calendar year in which the employee submits their RITA claim and the agency pays the RITA.
- (c) **In most cases—**
  - (1) For every Year 1 an employee will have a corresponding Year 2;
  - (2) Every Year 2 immediately follows a Year 1; and
  - (3) 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

### 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.