IRS Updates Per Diem Substantiation Rates for 2009

The IRS has released Revenue Procedure 2009-47 updating 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, 2009, through December 31, 2009, 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, 2009, the meal and incidental rate for travel within the United States is $59/day (outside the United States, $65/day). These rates are limited to 80 percent in 2009. Taxpayers who used the rates in effect prior to October 1, 2009, must continue to use those rates for the remainder of the 2009 tax year. Those taxpayers cannot use the updated rates until January 1, 2010.

John R. Dundon, EA - www.1040.com/jd - Taxpayer Advocate - Enrolled with the United States Department of Treasury to Practice before the IRS - Under contract with the United States Department of Treasury as a Certified ITIN Acceptance Agent - Direct phone # 720-234-1177