Which statement is not true of an accountable plan?

An accountable plan is a reimbursement arrangement that enables employers to reimburse employees for business expenses without those amounts being considered taxable income to the employee. In order for a plan to be considered accountable, it must meet specific criteria.

The statement that is not true of an accountable plan is that amounts paid under an accountable plan are wages. In reality, reimbursements made under an accountable plan do not count as wages or taxable income if the plan meets IRS guidelines. Instead, these reimbursements are treated as non-taxable and do not need to be reported on the employee's W-2, provided the employee submits proof of expenses and the amounts are returned if they exceed what is allowable.

This ensures that employees are not taxed on funds they had to spend out of pocket for business purposes, distinguishing accountable plans from non-accountable plans, where reimbursements are treated as wages. The other choices correctly outline the requirements of an accountable plan, emphasizing the importance of employees documenting their expenses, the obligation to return any excess reimbursements, and the necessity for employees to pay deductible expenses.