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IRS updates per diem rates for travel expenses

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Tax Hot Topics newsletter The IRS recently issued Notice 2021-52 to provide the 2021-2022 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, including:

  • The special transportation industry meal and incidental expenses rates
  • The rate for the incidental-expenses-only deduction
  • The rates and list of high-cost localities for purposes of the high-low substantiation method

The notice is an annual notice that replaces the special per diem rates provided in Notice 2020-71 and is generally effective for per diem allowances for travel away from home on or after Oct. 1, 2021.

Contact:
Jeff Martin
Partner
Washington National Tax Office
T +1 202 521 1526

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