The IRS has released the 2018-2019 special per diem rates. Taxpayers use the per diem rates to substantiate certain expenses incurred while traveling away from home. Notice 2017-54, I.R.B. 2017-42, 321, is superseded.

These special per diem rates include:

  • Special transportation industry meal and incidental expenses (M&IE) 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.

Transportation Industry M&IE Rates

  • The special M&IE rates for taxpayers in the transportation industry are:
  • $66 for any locality of travel in the continental United States (CONUS); and
  • $71 for any locality of travel outside the continental United States (OCONUS).

Incidental Expenses Only Rate The rate is $5 per day for any CONUS or OCONUS travel for the incidental expenses only deduction. High-Low Substantiation For purposes of the high-low substantiation method, the 2018-2019 special per diem rates are:

  • $287 for travel to any high-cost locality; and
  • $195 for travel to any other locality within CONUS.

The amount treated as paid for meals is:

  • $71 for travel to any high-cost locality; and
  • $60 for travel to any other locality within CONUS.

Instead of the meal and incidental expenses only substantiation method, taxpayers may use:

  • $71 for travel to any high-cost locality; and
  • $60 for travel to any other locality within CONUS.

Taxpayers using the high-low method must comply with Rev. Proc. 2011-47, I.R.B. 2011-42, 520. That procedure provides the rules for using a per diem rate to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home. If you have questions about the special per Diem rates, contact an MCB Advisor at 703-218-3600 or click here. To review our tax news articles, click here. To learn more about MCB’s tax practice and our tax experts, click here.

Share This
X