Be Aware of Policy Update Due to Change in IRS Laws: Don’t Risk Income Tax on your Procurement Card Transactions

Published: Jan. 19, 2023

Beginning January 1st, 2023, any procurement card expenses that are not submitted within 90 days of the transaction date, and any travel card expenses not submitted within 90 days of the end of the associated trip, will be considered taxable income to the cardholder and will be reported on their pay stub and W-2. If a cardholder submits a transaction after the 90-day threshold, they will become subject to tax withholding for those charges even if they provide an ample business justification for the expense. This means that beginning 1/1/23, if you do not document, attach receipts, and submit your Procurement Card transactions on an expense report in Concur within 90 days of the date the expense was incurred, the amount of the expense will be reported as taxable income to you.

How to Prepare:

  • People who have booked travel card expenses in advance of a trip add them to a travel report & specify the trip dates in Concur. The report would remain unsubmitted until after the trip has been completed.
  • If you are a Procurement Card cardholder or cardholder delegate, review any unsubmitted card transactions in Concur now.
  • If any Procurement Card expenses have a transaction date on or before October 1, 2022: assign the transactions to a Procurement Card expense report, enter the required business purpose and attached required receipts, and submit the report in Concur immediately.
  • Remember that per PSC policy, Procurement Card expenses should be submitted monthly (every 30 days).

For questions or feedback reach out to PSC@cu.edu.