What must all reimbursements in an accountable plan be?

In an accountable plan, all reimbursements must be repaid within a reasonable time to ensure they meet the criteria set by the IRS for deductibility. An accountable plan is designed to reimburse employees for expenses incurred while performing their jobs without resulting in taxable income for the employees. The key features of an accountable plan include that the expenses must be directly connected to the business, the employee must provide documentation substantiating the expenses, and the reimbursements must be made within a reasonable timeframe after the expenses are incurred. This requirement helps maintain proper documentation and accountability, making sure that employees do not have unreported or excessive reimbursements that could be viewed as additional compensation.

The other options do not align with the guidelines of an accountable plan. Documentation in one-time reports may not provide ongoing accountability. Approval by a third party is not necessary for the reimbursements to be valid. Relying solely on estimations does not fulfill the requirement for substantiation of actual expenses incurred.