[Radiant]

Is an assignment considered indefinite if assignments are with the same client but at different locations?

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I work for a consulting company and I travel for work. I receive a 1099. My company covers my expenses like hotel, meals, airfare etc. I turn in expense forms rather then receive a per diem rate for expenses.

My assignment was originally temporary and at a single location (and it is at 11 months now). I know that by IRS definition, I would need to work at another location for the next few months for the original location to be considered temporary again. A month ago I changed assignments but stayed at the same location. Now the Client would like to have me located at another one of their offices - different city but same state - for 1-2 months.

Will this new schedule of moving to different locations "absolve me" from the IRS considering it an indefinite job assignment since it will be at multiple locations (at the minimum 2-3 locations)? Is there a minimum requirements (in miles) that the locations be apart from? For example, it is for a Northern CA Healthcare System so all locations will be in Northern California but at least 100 miles apart.

Thank you very much! I haven't been able to get a clear definition from the IRS website.

[AtlantaTaxExpert]

Offhand, I would say the transfer of at least 100 miles WILL qualify as a second temporary job assignment, provided you ACTUALLY move.

By ACTUALLY move, I mean that you break your apartment lease, shut down the utilities, move to the new city, do the work (for however long), then move back into a DIFFERENT apartment. Because of the duration of the move, you will NOT qualify to deduct these costs as moving expenses.

If you retain your apartment at the old location, go to the new city for 1-2 months (living in a hotel), then return to the old apartment, the IRS will assume that you are attempting to get around the one-year rule in order to retain the advantage of NOT having to pay taxes on your expense reimbursements. They have specifically said as much in several of their publications that address this issue.