Kathleen Cox-Temporary Quarters Expenses

B-257719 May 08, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights She was subsequently given a permanent change of station to her temporary duty location and was authorized 60 days temporary quarters subsistence expenses. Stayed in the same furnished apartment at the new station for approximately 45 days before her new permanent residence was ready for occupancy. Since the agency has determined that her occupancy of the furnished apartment was in fact temporary under 41 C.F.R. Was asked in early 1993 if she would be interested in a position managing the IRS office in Palm Springs. She indicated she would accept this position if moving expenses were allowed. She was assigned to temporary duty in Palm Springs on March 8. Because of budget constraints and because the duration of the detail was indefinite. View Decision Matter of: Kathleen Cox-Temporary Quarters Expenses File: B-257719 Date: May 8, 1996 Employee moved into a furnished rental apartment while on temporary duty and maintained a permanent residence at her old duty station where her family continued to reside. She was subsequently given a permanent change of station to her temporary duty location and was authorized 60 days temporary quarters subsistence expenses. After her transfer became effective, she vacated her permanent residence at her old station, moved her family and her household goods to her new duty station, and stayed in the same furnished apartment at the new station for approximately 45 days before her new permanent residence was ready for occupancy. Since the agency has determined that her occupancy of the furnished apartment was in fact temporary under 41 C.F.R. Sec. 302-5.2(c) (1995), her claim for temporary quarters expenses may be paid. William E. Gray, 66 Comp.Gen. 532 (1987), distinguished. DECISION The Internal Revenue Service (IRS) requests a decision as to whether it may reimburse an employee for temporary quarters subsistence expenses in connection with a permanent change of station where the employee continued to reside after transfer in the apartment which she had rented while on temporary duty. [1] For the following reasons, her claim may be paid. BACKGROUND The record shows that the employee, Ms. Kathleen Cox, stationed at Laguna Niguel, California, was asked in early 1993 if she would be interested in a position managing the IRS office in Palm Springs, California. She indicated she would accept this position if moving expenses were allowed. Pending a decision on that question, she was assigned to temporary duty in Palm Springs on March 8, 1993. She initially stayed at a hotel at a cost of $80 per night. Because of budget constraints and because the duration of the detail was indefinite, she entered into a month-to-month lease for a furnished apartment at an average cost of $45 per night. She moved into this apartment on April 1, 1993, and continued to maintain her permanent residence at her old duty station and her family (daughter and granddaughter) continued to reside there. On July 21, 1993, the District Director approved the transfer of Ms. Cox to Palm Springs with a reporting date of August 8, 1993. Her travel orders authorized her 60 days of temporary quarters occupancy. Ms. Cox asked IRS officials whether, after her transfer, she could continue to stay in the same furnished apartment she occupied as temporary quarters. Based on a review of the agency's travel manual, the IRS advised her that nothing prohibited her staying there. She then gave notice on her permanent residence at her old duty station and promptly located a new permanent residence in the Palm Springs area which was available for occupancy on September 23, 1993. In August 1993, she vacated her old permanent residence, her family joined her in Palm Springs, and her household goods were shipped to Palm Springs. Based on the agency's advice, she continued to reside in the furnished apartment in Palm Springs and claimed temporary quarters expenses for the period of August 8 to September 23, 1993. The IRS Western Region Fiscal Management Office suspended Ms. Cox's temporary quarters lodging claim [2] based on William E. Gray, 66 Comp.Gen. 532 (1987), since she had not vacated the apartment she occupied in Palm Springs at the time of notice of transfer. The IRS points out that Ms. Cox did not move her family and her household goods to Palm Springs until after she was transferred there and that her intent was to occupy the furnished apartment only temporarily until she could move into permanent quarters. Thus, it concludes the apartment used by Ms. Cox while on temporary duty was indeed temporary lodging.