“The General Services Administration (GSA), in coordination with the Internal Revenue Service, has issued guidance authorizing federal agencies to reimburse relocation expenses when an employee is transferred from one official station or agency to another for permanent duty. It also clarifies the requirements of changes to the federal tax code to reduce income tax withholdings from 25 to 22 percent.

"The bulletin gives agencies consistent guidance for covering ‘substantially all’ relocation transactions not previously subject to federal taxes and is retroactive to Jan. 1, 2018. This bulletin will serve as the policy document agencies should rely on for clear interpretation of the updated tax law until GSA issues an amendment to the Federal Travel Regulation (FTR).