IRS raises per diem charges for enterprise journey efficient Oct. 1

The particular per diem charges that taxpayers could use to substantiate journey and enterprise bills beneath the per diem substantiation methodology (set out in Rev. Proc. 2019-48) will enhance for the approaching yr, as supplied by the IRS in Notice 2026-60 and relevant beginning Oct. 1.

Generally, beneath the per diem substantiation methodology, if an employer or different payer pays a per diem allowance in lieu of reimbursing an worker’s precise bills for lodging, meals, and incidental bills, the quantity deemed substantiated for every calendar day is the lesser of the allowance quantity for that day or the quantity computed beneath federal per diem charges for the place of journey inside the continental United States (CONUS).

A separate federal price applies to per diem allowances only for meals and incidental bills (M&IE). Taxpayers utilizing the charges and the listing of localities in Notice 2026-60 should adjust to the principles for the per diem substantiation methodology in Rev. Proc. 2019-48.

High-low substantiation methodology charges

The high-low substantiation methodology applies the next price to designated high-cost localities, which stays in impact for a specified portion of the calendar yr, and a decrease price to all different localities. The annual replace contains the per diem price beneath the high-low substantiation methodology for journey inside CONUS.

The price for journey to high-cost localities inside CONUS will rise to $329 from $319, and the speed for non-high-cost localities will enhance to $230 from $225. The portion of the charges handled as paid for meals for functions of Sec. 274(n) stays $86 for high-cost CONUS localities and $74 for all different CONUS localities.

The discover revised the listing of high-cost localities for the annual interval of Oct. 1, 2026, by way of Sept. 30, 2027, for which the brand new charges are in impact. High-cost localities have a federal per diem price of $280 or extra.

Transportation business charges

The discover additionally supplies particular charges for taxpayers within the transportation business. The M&IE charges stay unchanged at $80 for any locality of journey inside CONUS and $86 for localities of journey outdoors CONUS.

The price for incidental bills stays $5 per day for journey in and outdoors CONUS.

— To touch upon this text or to counsel an concept for one more article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.