Accounting News

Thursday, September 27, 2012
IRS Updates Reimbursement Rates

The per diem rates for 2012-2013 have been issued by the IRS. The new rates were published in Notice 2012-63. These should be used by taxpayers to determine the amount of ordinary business expenses when traveling away from home for business. The new rates become effective for travel on or after October 1st, 2012.

If you are using the high-low substantiation method the rage is now $242 for a high cost locality and $163 for areas outside the high cost localities for meals. Travel is $65 for high cost localities and $52 outside of that. Incidental rates are $5 per day regardless of area. For a full list of what a high cost locality is you can visit the link above.

If you have any questions on the best deduction method for your situation you can visit your local CPA.

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