The Inside Income Service has issued the particular per diem charges that take impact Oct. 1, 2021, which taxpayers can use to substantiate the quantity of bills for lodging, meals, and incidental bills when touring away from dwelling.
Discover 2021-52 consists of the particular transportation trade fee, the speed for the incidental-expenses-only deduction, together with the charges and listing of high-cost localities for functions of the high-low substantiation methodology.
The particular meal and incidental bills charges for taxpayers within the transportation trade are $69 for any location within the continental United States and $74 for any locality exterior the continental U.S. The speed for any journey locale inside or exterior the continental U.S. for the incidental-expenses-only deduction is $5 per day.
For functions of the high-low substantiation methodology, the per diem charges in lieu of the charges within the earlier Discover 2020-71 (the per diem substantiation methodology) are $296 for journey to any high-cost locality and $202 for journey to another locality throughout the continental U.S. The quantity of the $296 excessive fee and $202 low fee that’s handled as paid for meals is $74 for journey to any high-cost locale and $64 for journey to another locality throughout the continental U.S.
An IRS workplace in New York
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The per diem charges in lieu of the charges described in Discover 2020-71 (the meal and incidental-expenses-only substantiation methodology) are $74 for journey to any high-cost locality and $64 for journey to another locality throughout the continental U.S.
The discover features a listing of high-cost localities which have a federal per diem fee of $249 or extra.
The sooner Rev. Proc. 2019-48 offers the foundations for utilizing per diem charges, fairly than precise bills, to substantiate the quantity of bills for lodging, meals, and incidental bills for journey away from dwelling. Taxpayers who use per diem charges to substantiate the quantity of journey bills beneath Rev. Proc. 2019-48 can use the federal per diem charges revealed yearly by the Normal Providers Administration. Rev. Proc. 2019-48 permits sure taxpayers to make use of a particular transportation trade fee or to make use of charges beneath a high-low substantiation methodology for sure high-cost localities. The IRS proclaims the charges and the speed for the incidental bills solely deduction in an annual discover.
“Use of a per diem substantiation methodology just isn’t obligatory, the IRS famous. “A taxpayer could substantiate precise allowable bills if the taxpayer maintains enough information or different enough proof for correct substantiation.”