972.392.1143 |
972.934.1269 (Fax)
Articles

IRS Sets Per Diem Rates for Expenses

IRS Notice 2013-65 announces the 2013-2014 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred when traveling away from home.  The notice specifically addresses:

(1) The special transportation industry meal and incidental expenses (M&IE) rates

(2)The rate for the incidental expenses only deduction

(3) The rates and list of high-cost localities for purposes of the high-low substantiation method

The annually announced rates are the rate for the incidental-expenses-only deduction, and the rates and list of high-cost localities for purposes of the hi-low substantiation method.

Note: Transportation between places of lodging or business and places where meals are taken and the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings are no longer included in incidental expenses.  Taxpayers using per diem rates may separately deduct or be reimbursed for transportation and mailing expenses. A review of rates follows:

  • Incidental expenses-only deduction:  $5 per day for any locality of travel inside or outside the continental United States.

 

  • Special meals and incidental expenses rates for taxpayers in the transportation industry:  $59 for any locality of travel in the continental United States and $65 for any locality of travel outside the continental United States.

 

  • For purposes of the high-low substantiation method, the per diem rates are $251 for travel to any high-cost locality and $170 for travel to any other locality within the continental United States. Notice 2013-65 also lists the high-cost localities that have a federal per diem rate of $210 or more.

Tags: