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IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method - Emil Estafanous, CPA : Emil Estafanous, CPA

IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method

The IRS released an refurbish and new superintendence Sep 30 (Rev. Proc. 2011-47) for use of a sovereign per diem rate to justify a volume of typical and required losses for lodging, dishes and immaterial costs paid or incurred for business-related transport divided from home. The IRS settled that this income procession would be a final annual refurbish of these confirmation manners and procedures, and that going brazen it usually will tell a new income procession as necessary.

The income procession updates Rev. Proc. 2010-39. Besides providing superintendence on focus of a per diem rate to lodging, dishes and immaterial expenses, a annual income procedures also yield manners for substantiating a cost of dishes and immaterial losses usually that an employer or other third-party payor reimburses. Employees and self-employed taxpayers might use a per diem rate for dishes and immaterial expenses, or immaterial losses only.

The new income procession also provides that taxpayers might continue to use a high-low confirmation method. In Announcement 2011-42, released in Jul 2011, a IRS pronounced it was discontinuing a process since it believed few taxpayers used it. Subsequently, taxpayers that had been regulating a process requested that a Service continue it. In addition, a income procession clarifies that partners and volunteers who accept reimbursements might use a methods certified by it to justify their expenses.

Also on Sep 30, a IRS released a initial of what it pronounced will be apart annual notices (Notice 2011-81) providing a special per diem rates for use in substantiating losses while roving divided from home underneath a manners in Rev. Proc. 2011-47. Specifically, a notice includes a travel attention and immaterial losses rates, a rate for a incidental-expenses-only reduction and a rates and list of high-cost localities for functions of a high-low confirmation method.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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