Recruitment

The IRS allows for a wide scope of visa types to be reimbursed for recruitment.

It is always permissible to reimburse expenses for travel to a job interview, regardless of the immigration status (or even the lack thereof) of the job applicant. This means that persons in F-2, H-4, TD, B1/2, as well as persons without current status documentation, can be reimbursed for travel expenses for a job interview.

Employment Recruitment: Rev. Rul. 63-77 states that to the extent that the payments do not exceed expenses, the amounts are not considered gross income of the individuals.

Spousal Travel: Taxable, unless the spouse is performing services or interviewing, as well.

Student Recruitment: Currently, there is not a comparable revenue ruling for recruitment for attending the institution, although the situation is analogous. However, the only reason that an institution would make such reimbursements is because it is in the interests of the institution. Therefore, there is a good argument that such reimbursements are ordinary and necessary business expenses of the institution. Even though the individual has some benefit from the payment that should not cause the payment to be income to the individual.