The Internal Revenue Service recently published Notice 2014-57, an annual notice providing the 2014-2015 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home.
The notice specifically includes 1) the special transportation industry meal and incidental expense (M&IE) rates, 2) the rate for the incidental expenses only deduction, and 3) the rates and lists of high-cost localities for purposes of the high-low substantiation method.
Special M&IE Rates for Transportation Industry: $59 in continental U.S., $65 outside continental U.S.
Incidental Expenses Only Deduction: $5, in or outside of continental U.S.
The notice 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, 2014, for travel away from home on or after October 1, 2014. For purposes of computing the amount allowable as a deduction for travel away from home, this notice is effective for meal and incidental expenses or for incidental expenses only paid or incurred on or after October 1, 2014.
Check out Notice 2014-57 for more details, including the rates and lists of high-cost localities for purposes of the high-low substantiation method.