Frank Rudewicz | December 3, 2019
The IRS has released the 2019-2020 special per diem rates. Taxpayers use the per diem rates to substantiate certain business expenses incurred while traveling away from home for the period October 1, 2019, to September 30, 2020. Notice 2018-77, I.R.B. 2018-42, 601, is superseded.
Transportation Industry M&IE Rates
The special meal and incidental expenses (M&IE) rates for taxpayers in the transportation industry are:
- $66 for any locality of travel in the continental United States (CONUS)
- $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 Method
For purposes of the high-low substantiation method, the 2019-2020 special per diem rates are:
- $297 for travel to any high-cost locality
- $200 for travel to any other locality within CONUS
The amounts treated as paid–for meals, and the per diem rates in lieu of the rates described in Notice 2018-77 (the meal and incidental expenses only substantiation method), are:
- $71 for travel to any high-cost locality
- $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.
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