Special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling
The IRS today released Notice 2024-68—an annual notice providing the 2024-2025 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home.
Background
The IRS issues an annual update of the per diem rates and list of high-cost localities that taxpayers may use to comply with Rev. Proc. 2019-48 (or successor) setting forth rules for using a per diem rate to substantiate, under section 274(d) and Treas. Reg. § 1.274-5, the amount of ordinary and necessary business expenses of an employee for lodging, meal, and incidental expenses paid or incurred while traveling away from home.
Effective date
Notice 2024-68 is effective for per diem allowances for lodging, meal and incidental expenses—or for meal and incidental expenses only—that are paid to any employee on or after October 1, 2024, for travel away from home on or after October 1, 2024.
For purposes of computing the amount allowable as a deduction for travel away from home, Notice 2024-68 is effective for meal and incidental expenses or for incidental expenses only paid or incurred on or after October 1, 2024.