Special travel per diem rates begin next month

Special per diem rates become effective Oct. 1 to substantiate the amount of expenses for lodging, meals and incidental expenses when taxpayers travel away from home, the Internal Revenue Service announced.

Rev. Proc. 2019-48 provides the rules for using per diem rates, rather than actual expenses, to substantiate the amount of expenses for lodging, meals, and incidental expenses for travel away from home as of Oct. 1.

Taxpayers who use per diem rates to substantiate the amount of travel expenses under Rev. Proc. 2019-48 may use the federal per diem rates published annually by the General Services Administration.

Notice 2024-68 provides:

• The special M&IE rates for taxpayers in the transportation industry of $80 for any locality of travel in the continental United States and $86 for any locality of travel outside the continental United States;
• The rate for the incidental expenses-only deduction ($5 per day); and,
• Annual high-low rates for the substantiation method, as well as a list of high-cost localities and recent changes to that category.

Use of a per diem substantiation method isn't mandatory. A taxpayer may substantiate actual allowable expenses if they maintain adequate records or other sufficient evidence for substantiation. 

Notice 2024-68 will be in The Internal Revenue Bulletin of Oct. 7.