* Maximum Per Diem Rates Updated * *
The IRS has released Rev. Proc. 2005-67 updating the maximum per diem rates for meals and lodging. The updated per diem rates are released each year in October. Taxpayers have the option of using the updated amounts for the period beginning October 1, 2005 through December 31, 2005, 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, 2005, 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 70 percent in 2005 (75 percent in 2006).
Taxpayers who used the rates in effect prior to October 1, 2005, must continue to use those rates for the remainder of the 2005 tax year.
Those taxpayers cannot use the updated rates until January 1, 2006.
For any taxpayer who started there endeavor after October 1st 2005 may use the new per diem rates.
The full text of Rev. Proc. 2005-67 is available on the IRS web site
Frank
The IRS has released Rev. Proc. 2005-67 updating the maximum per diem rates for meals and lodging. The updated per diem rates are released each year in October. Taxpayers have the option of using the updated amounts for the period beginning October 1, 2005 through December 31, 2005, 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, 2005, 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 70 percent in 2005 (75 percent in 2006).
Taxpayers who used the rates in effect prior to October 1, 2005, must continue to use those rates for the remainder of the 2005 tax year.
Those taxpayers cannot use the updated rates until January 1, 2006.
For any taxpayer who started there endeavor after October 1st 2005 may use the new per diem rates.
The full text of Rev. Proc. 2005-67 is available on the IRS web site
Frank