The IRS today released an advance copy of Notice 2019-55—an annual notice providing the 2019-2020 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home.
Notice 2019-55 [PDF 31 KB] provides:
The IRS issues an annual update of the rules for determining when the amounts of ordinary and necessary business expenses of an employee for lodging, meal, and incidental expenses incurred while traveling away from home are deemed substantiated under Reg. section 1.274-5, and when a per diem allowance under a reimbursement or other expense allowance arrangement is provided.
Notice 2019-55 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, 2019, for travel away from home on or after October 1, 2019. For purposes of computing the amount allowable as a deduction for travel away from home, Notice 2019-55 is effective for meal and incidental expenses or for incidental expenses only paid or incurred on or after October 1, 2019.
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