Saturday, September 27, 2008

IRS Updates Per Diem Rates for 2008


The IRS has updated the maximum per diem rates for meals and lodging. The updated per diem rates are released each year by October. Taxpayers have the option of using the updated amounts for the period beginning October 1, 2008 through December 31, 2008, or using the rates that were in effect for the first nine months of the year for the entire year.

Also included in the notice is the maximum meal and incidental rate allowed for taxpayers in the transportation industry. Beginning October 1, 2008, the meal and incidental rate for travel within the United States is $52/day (outside the United States, $58/day). These rates are limited to 80 percent in 2008. Taxpayers who used the rates in effect prior to October 1, 2008, must continue to use those rates for the remainder of the 2008 tax year. Those taxpayers cannot use the updated rates until January 1, 2009.

No comments: