04 Nov IRS Publishes 2022-2023 Particular Per Diem Charges
In accordance with Discover 2022-44 from the IRS, numerous laws define the foundations for utilizing a per diem fee to substantiate the quantity of atypical and needed enterprise bills paid or incurred whereas touring away from house.
As defined within the Journal of Accountancy, “Usually, in lieu of precise lodging, meal, and incidental bills incurred, a payer could take into account substantiated for federal tax functions an worker’s bills incurred for employment-related journey in an quantity as much as or equaling the federal per diem fee for the locality of journey.”
The IRS assertion says that for functions of the high-low substantiation methodology, the per diem charges in lieu of the charges described in Discover 2021-52 (the per diem substantiation methodology) are $297 for journey to any high-cost locality and $204 for journey to every other locality inside the continental United States.
The IRS assertion additionally lists localities which have a federal per diem fee of $250 or extra, and are high-cost localities for the desired portion of the calendar 12 months.
In accordance with an announcement from the Virginia Society of Tax & Accounting Professionals, “Use of a per diem substantiation methodology shouldn’t be necessary. A taxpayer could substantiate precise allowable bills if the taxpayer maintains enough information or different ample proof for correct substantiation.”
General, the foundations are sophisticated, so companies ought to get recommendation from certified tax professionals.
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