The IRS issued its annual update Friday of special per-diem rates for substantiating ordinary and necessary business expenses incurred while traveling away from home (Notice 2021-52).

The new rates are in effect from Oct. 1, 2021, to Sept. 30, 2022. Specifically, they are the special per-diem rates, including the transportation industry meal and incidental expenses rates; the rate for the incidental-expenses-only deduction; and the rates and list of high-cost localities for purposes of the high-low substantiation method.

The updated rates are effective for per-diem allowances paid to any employee on or after Oct. 1, 2021, for travel away from home on or after that date, and supersede the rates in Notice 2020-71, which provided the rates for Oct. 1, 2020, through Sept. 30, 2021.

Rev. Proc. 2019-48 provided general rules for using a federal per-diem rate to substantiate the amount of ordinary and necessary expenses for lodging,…

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