Board of Contract Appeals General Services Administration Washington, D.C. 20405 _____________________________ December 28, 1999 _____________________________ GSBCA 15151-RELO In the Matter of HERMAN S. RANSOM Herman S. Ransom, Olathe, KS, Claimant. Peggy A. Grant, Acting Assistant Chief Financial Officer for Accounting, Office of the Chief Financial Officer, Department of Housing and Urban Development, Washington, DC, appearing for Department of Housing and Urban Development. DeGRAFF, Board Judge. In March 1997, Herman S. Ransom, an employee of the Department of Housing and Urban Development (HUD), transferred from Alabama to Kansas. In connection with the transfer, HUD paid Mr. Ransom a relocation income tax allowance as required by statute and regulations. 5 U.S.C. 5724b (Supp. III 1997); 41 CFR pt. 302-11 (1997). HUD states that it paid Mr. Ransom the maximum allowance permitted by the regulations and that it reviewed its figures to ensure that the amount it paid was correct. Mr. Ransom does not contend that HUD miscalculated the amount of his allowance. Mr. Ransom claims, however, that HUD should pay an added $2583 because the amount of the allowance paid by HUD did not reimburse him fully for the income taxes that he incurred as the result of his transfer. HUD correctly decided to deny Mr. Ransom s claim. As we explained in Robert J. Dusek, GSBCA 14325-RELO, 98-1 BCA 29,440 (1997), the statute and the regulations are designed to reimburse employees for substantially all of the taxes they incur as the result of reimbursed relocation expenses. The procedures contained in the regulations for calculating the amount of an allowance are not designed to reimburse an employee for the exact amount of the employee s tax liability and cannot be adjusted to take into account an individual employee s particular circumstances. 41 CFR 302-11.8(b); accord Sol Gilman, GSBCA 14938-RELO, 99-2 BCA 30,506; William A. Lewis, GSBCA 14367- RELO, 98-1 BCA 29,532. Even if Mr. Ransom s circumstances caused him to incur a tax liability that was not fully satisfied by the allowance he received, HUD cannot pay Mr. Ransom an allowance in excess of that permitted by the regulations. Because HUD paid Mr. Ransom the maximum allowance permitted by the regulations, we must deny Mr. Ransom s claim. __________________________________ MARTHA H. DeGRAFF Board Judge