The special per diem rates by which taxpayers may substantiate ordinary and necessary business expenses of travel away from home will be higher starting Sunday, Oct. 1, the IRS provided in Notice 2023-68.
Generally, in lieu of actual lodging, meal, and incidental expenses incurred, a payer may consider substantiated, for federal tax purposes, an employee's expenses incurred for employment-related travel in an amount up to or equal the federal per diem rate for the locality of travel.
revised the list of high-cost localities for the upcoming new annual period (Oct. 1, 2023, to Sept. 30, 2024) for which the new rates are in effect. The notice also provides special rates for taxpayers in the transportation industry. Read more.