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B-200615 1 (1981-06-15)

handle is hein.gao/gaobadjlo0001 and id is 1 raw text is: ,- . FILE: B-200615 DAT : June 15, 1981 MATTER OF: Larry E. Sevier - Real Estate Expenses - VA Loan Origination fee DIGEST: Transferred employee may-not be reimbursed for expense he characterizes as VA loan origination fee incurred incident to pur- chase of home in vicinity of new duty sta- tion. Fee has been held by this Office to be finance charge and, thus, nonreimbursable expense under Federal Travel Regulations (FPMR 101-7) paragraph 2-6.2d (May 1973). That the Internal Revenue Service may not permit fee to be deducted as interest is not relevant. 5 U.S.C. §§ 5724 and 5724a govern employee's entitlement to reimbursement for relocation expenses, not laws and regulations governing taxation. This action is in response to a claim from Larry E. Sevier, an employee of the Rural Electric Administration, United States Department of Agriculture, for reimbursement of a loan origination fee incurred incident to his transfer from Shawnee, Oklahoma, to Washington, D.C. Mr. Sevier was denied reimbursement for a loan origina- tion fee on a Veterans Administration guaranteed loan. Mr. Sevier states that he is aware that reimbursement for this fee is normally not allowed on the basis that it con- stitutes a finance charge. However, he has asked this Of- fice to reconsider its prior decisions in light of the position taken by the Internal Revenue Service that a loan origination fee, sometimes referred to as points, charged for services for getting a Veterans Administration loan are not interest. Internal Revenue Service Publication 545 (Rev. No. 80). Mr. Sevier has not provided a copy of the settlement sheet or an itemization of the costs that make up the charge that he refers to as a VA loan origination fee. Therefore, we must rely on his characterization of the expense. Reimbursement of expenses incident to the transfer of an employee from one permanent duty station to another are / N,~/~ THE COMPTROLLER ENERAL OF THE UNITED STATES WASHINGTON, 0. C. 20548 0 / 7J41

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