Taxpayer received a car allowance each paycheck which is included in employee's wages. A tax preparer advised him that if employer handled as a non-deduction, then employee wouldn't have to claim as deduction (employee is major shareholder in C Corp). I am aware that if employer has an accountable plan in place, then expenses submitted to employer and reimbursed to employee would not be included in income but employer would be able to deduct. Are other tax preparers aware of the exception that tax preparer is referring? Your input is very much appreciated.