Starting October 1, the IRS will implement special per diem rates to help taxpayers substantiate travel expenses for lodging, meals, and incidental costs. According to IRS Revenue Procedure 2019-48, taxpayers can use these standardized rates, rather than actual expenses, for travel away from home.

The new Notice 2024-68 outlines specific rates: $80 for transportation industry travel within the continental U.S., $86 for travel outside, and a $5 daily incidental expenses-only deduction. It also provides high-low rates and identifies high-cost localities. While using per diem rates is optional, taxpayers may choose to substantiate actual expenses if they maintain proper records. Full details has been published in the October 7 edition of the Internal Revenue Bulletin.

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