Tuesday, November 20, 2012

IRS Announces Per Diem Rates


Per Diem Amounts - Effective October 1, 2012

The M&IE rates have stayed at the same $46, $51, $56, $61, $66, and $71 although some cities may have different rates that they had for the prior fiscal year (October 1, 2011-September 30, 2012).  The full per diem tables by state and key city can be found at http://www.gsa.gov/.  IRS Publication 1542 has been discontinued and is no longer available for new years.

The definition of “incidental expenses” has changed.  Effective October 1, 2012, this includes only fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.  Transportation between places of lodging or business and places where meals are taken, and the mailing cost of filing travel vouchers and paying employer-sponsored charge
card billings, are no longer included in incidental expenses.  Accordingly, taxpayers using per diem rates may separately deduct or be reimbursed for transportation and mailing expenses.

The High/Low cost amounts are now $242 and $163 with the M&IE portion deemed to be $65 and $52, respectively.

The special M&IE per diem rate for taxpayers in the transportation industry is $59 for travel in the continental United States.

- IRS Notice 2012-63

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