---
kind: "section"
citation: "5 U.S.C. § 5706c"
title: "5"
title_heading: "Government Organization and Employees"
number: "5706c"
heading: "Reimbursement for taxes incurred on money received for travel expenses"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/5706c"
units:
  - "Part III — Employees"
  - "Subpart D — Pay and Allowances"
  - "Chapter 57 — Travel, Transportation, and Subsistence"
  - "Subchapter I — Travel and Subsistence Expenses; Mileage Allowances"
---

# §5706c. Reimbursement for taxes incurred on money received for travel expenses

- (a) Under regulations prescribed pursuant to [section 5707 of this title](/usc/5/5707.md), the head of an [agency](/usc/5/5701.md?p=1) or [department](/usc/5/10101.md?p=4), or his or her designee, may use appropriations or other [funds](/usc/5/8401.md?p=6) available to the [agency](/usc/5/5701.md?p=1) for administrative expenses, for the reimbursement of Federal, [State](/usc/5/8521.md?p=a-3), and local income taxes incurred by an [employee](/usc/5/5701.md?p=2) of the [agency](/usc/5/5701.md?p=1) or by an [employee](/usc/5/5701.md?p=2) and such [employee](/usc/5/5701.md?p=2)’s spouse (if filing jointly), for any travel or transportation reimbursement made to an [employee](/usc/5/5701.md?p=2) for which reimbursement or an allowance is provided.
- (b) Reimbursements under this section shall include an amount equal to all income taxes for which the [employee](/usc/5/5701.md?p=2) and spouse, as the case may be, would be liable due to the reimbursement for the taxes referred to in [subsection (a)](#a). In addition, reimbursements under this section shall include penalties and interest, for the tax years 1993 and 1994 only, as a result of [agencies](/usc/5/5701.md?p=1) failing to withhold the appropriate amounts for tax liabilities of [employees](/usc/5/5701.md?p=2) affected by the change in the deductibility of travel expenses made by Public Law 102–486.

## Source credit

(Added Pub. L. 105–264, § 4(a), Oct. 19, 1998, 112 Stat. 2354.)

## Notes

### Editorial Notes

### References in Text

Public Law 102–486, referred to in subsec. (b), is Pub. L. 102–486, Oct. 24, 1992, 106 Stat. 2776, known as the Energy Policy Act of 1992. For complete classification of this Act to the Code, see Short Title note set out under section 13201 of Title 42, The Public Health and Welfare, and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 105–264, § 4(c), Oct. 19, 1998, 112 Stat. 2354, provided that: “This section [enacting this section] shall be effective as of January 1, 1993.”