In my opinion, if the 3K is reimbursive then it needs to be disclosed as a reimbursive item on the IRP5. An effective way to get around this is to issue a separate IRP5 with the 3606 code and that way in terms of Sec 23 (m) the "slips" would be allowable and create a tax neutral event that is disclosed. Gone are the days where these types of transactions are allowable.