I had a business credit card issued by the company I worked for. I was late submitting an expense 1 month and they backcharged me the entire amount owed as earned income

[DavidD66]

Do you have a question about this?

[steven-culliton]

Hello DavidD. Yes, the company I work for charged me back the cost of the expense as earned income and told me I would have to write it off as a business expense. Is that legal? They cited an IRS exemption saying since I was late, it would hit me as income and they would tax me. 

[MaryK4]

Unfortunately, if your employer has an accountable plan they are required by law to include in your taxable income any expenses that are not reported on time.  There is no way for you to recoup the expenses because the Unreimbursed Employee Expenses are no longer deductible on your personal tax return.

@steven-culliton