IRS Updates Per Diem Rules for Business Travelers

 

The Internal Revenue Service has issued guidance for business travelers, updated to include changes resulting from the Tax Cuts and Jobs Act (TCJA).

 

Revenue Procedure 2019-48, posted on IRS.gov, updates the rules for using per diem rates to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home.  Taxpayers are not required to use a method described in this revenue procedure and may instead substantiate actual allowable expenses provided they maintain adequate records.

 

Although TCJA suspended the miscellaneous itemized deduction that employees could take for non-reimbursed business expenses, self-employed individuals and certain employees, such as Armed Forces reservists, fee-basis state or local government officials, eligible educators, and qualified performing artists, that deduct unreimbursed expenses for travel away from home may still use per diem rates for meals and incidental expenses, or incidental expenses only.

 

The revenue procedure makes clear that TCJA amended prior rules to disallow a deduction for expenses for entertainment, amusement, or recreation paid or incurred after Dec. 31, 2017.  Otherwise allowable meal expenses remain deductible if the food and beverages are purchased separately from the entertainment, or if the cost of the food and beverages is stated separately from the cost of the entertainment.

 

The IRS annually issues guidance providing updated per diem rates; Notice 2019-55 provides the rates that have been in effect since Oct. 1, 2019.

Please reload

Our Recent Posts

The Families First Coronavirus response Act was signed into law on March 18, 2020. The benefits were available on April 1, 2020 and continue through D...

FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA)

May 28, 2020

IRS On-Line Tool Helps Non-Filers Apply For Economic Impact Payments

April 15, 2020

The IRS has announced that Social Security recipients will automatically receive economic impact payments.

Those receiving Social Security benefits w...

Update: Stimulus Payments and Social Security

April 2, 2020

1/1
Please reload

Tags

Please reload

9310 Warwick Blvd

Newport News, VA 23601

(757) 595-6966

©2018 by Burks' Bookkeeping & Tax Service