IRS issues 2018–2019 per-diem rates
Business travelers who incur expenses while traveling away from home have new per-diem rates to use in substantiating certain of those expenses (Notice 2018-77). The new rates are in effect from Oct. 1, 2018, to Sept. 30, 2019. The IRS on Wednesday provided the 2018–2019 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, 2018, for travel away from home on or after that date, and supersede the rates in Notice 2017-54, which provided the rates for Oct. 1, 2017, through Sept. 30, 2018.
Rev. Proc. 2011-47 provides the general rules for using a federal per-diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals, and incidental costs paid or incurred for business-related travel away from home. Taxpayers using the rates and the list of localities in Notice 2018-77 must comply with the rules in Rev. Proc. 2011-47. Read more on the Journal of Accountancy.