Rev. Rul. 70-482

Sections 3121(a)(11), 3306(b)(9), and 3401(a)(15) of the Federal Insurance Contributions Act, the Federal Unemployment Tax Act, and the Collection of Income Tax at Source on Wages, respectively, except from the term "wages" any remuneration paid to or on behalf of an employee if (and to the extent that) at the time of payment of the remuneration it is reasonable to believe that a corresponding deduction is allowable under section 217 of the Internal Revenue Code of 1954.

Section 82 of the Code, as added by section 231(b) of the Tax Reform Act of 1969, P.L. 91-172, C.B. 1969-3, 10, provides that 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 or self-employment.

Held, the provisions of section 82 of the Code do not affect the exceptions from the term "wages" provided by sections 3121(a)(11), 3306(b)(9), and 3401(a)(15) of the Code. Accordingly, even though payments or reimbursements for expenses of moving from one residence to another residence attributable to employment or self-employment are included in gross income under section 82 as compensation for services, such payments are excepted from "Wages" for Federal employment tax purposes if it is reasonable to believe at the time of the payment that a corresponding deduction is allowable under section 217 of the Code.