CERTAIN EXPENSES OF RURAL LETTER CARRIERS.

SEC. 318. CERTAIN EXPENSES OF RURAL LETTER CARRIERS.(a) In General.—Section 162(o) (relating to treatment of certain reimbursed expenses of rural mail carriers) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following:“(2) Special rule where expenses exceed reimbursements.—Notwithstanding paragraph (1)(A), if the expenses incurred by an employee for the use of a vehicle in performing services described in paragraph (1) exceed the qualified reimbursements for such expenses, such excess shall be taken into account in computing the miscellaneous itemized deductions of the employee under section 67.”.(b) Conforming Amendment.—The heading for section 162(o) is amended by striking “Reimbursed”.(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2003.