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B-199944 1 (1981-04-16)

handle is hein.gao/gaobadjhs0001 and id is 1 raw text is: THE COMPTROL GENERAL DECISION . ' OF THE UNITED STATES WAS H I N GTO N 0. C. 2054 8 FILE: B-199944 . DAE, , April lp-1981 MATTER OF: John G. arty - Relocation Expense, 2Tax Service Fee~ DIGEST: Employee who purchased residence incident to transfer was charged by the lender a tax ser- vice fee which was not listed as a finance charge on the Truth-in-Lending Statement. The fee for a tax search to be performed periodi- cally throughout the term of the mortgage to check for tax delinquencies and liens is a finance charge and may not be reimbursed under paragraph 2-6.2d of the Federal Travel Regula- tions, even though otherwise characterized by the lender. The issue presented in this case is whether a tax service fee is a finance charge and thus not reimbursable under the Federal Travel Regulations (FTR)(FPMR 101-7, May 1973) where the Truth-in-Lending Statement provided the buyer by the lending institution does not list the tax service fee as a finance charge. Although not so characterized by the lender, such fee is actually a finance charge and may not be reimbursed under paragraph 2-6.2d of the FTR. This matter, although presented here by an authorized certifying officer of the Western Relgion of the lnternal Revenue Service, is in effect an appeal from our Claims Division's settlement denying Mr. /John G. Barry's claim for real estate expense reimbursement. Mr. Barry, an employee of the Phoenix _pistrict of the Internal Revenue Service, purchased ah6me incident to a permanent change 0-6 of station. A tax service fee in the amount of $16.50 D)O paid to the Transamerica Real Estate Tax Service is shown as an item of expense to be paid by Mr. Barry and his wife on the settlement statement from the lender, Maricopa Fed- eral Credit Union, Phoenix, Arizona. The Truth-in-Lending Statement given to the Barrys lists the tax service fee v.4 among those charges not a part of finance costs. In I) view of the lender's characterization of the tax service fee, the certifying officer asks that we reconsider our Claims Division's determination that the fee is a finance charge which may not be reimbursed under the FTR. In urging favorable reconsideration of Mr. Barry's claim, the certifying officer points out that a tax service fee qiiii'

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