The IRS has published a notice of which per diem rates taxpayers should use as of October 1.
The per diem rates are used to substantiate the amount of expenses used for lodging, meals and incidental costs when traveling away from home, including:
- The special transportation industry rate;
- The rate for the incidental expenses only deduction; and,
- Rates and list of high-cost localities for purposes of the high-low substantiation method.
Use of a per diem substantiation method is not mandatory. A taxpayer may use actual allowable expenses if they maintain adequate records or other sufficient evidence for substantiation.