An Accountable plan is a documented procedure that allows a business to reimburse employees or business owners for expenses incurred on behalf of the business, provided they meet certain criteria. For example, the plan may require that the employee claim the reimbursement within a certain timeline, present receipts to prove the amount of the expenses, or provide an explanation justifying why the expense was a business expense.
Amounts that are reimbursed as business expenses under an Accountable Plan are not subject to income tax in the hands of the receiver.
Here is a resource that you may find helpful in this regard:
https://www.journalofaccountancy.com/issues/2020/feb/employee-expenses-accountable-plan.html
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