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September 28, 2022
2022-1454

IRS releases per diem rates under the high-low substantiation method effective October 1, 2022 (or optionally, January 1, 2023)

In Notice 2022-44, the IRS released the per diem reimbursement rates that will apply effective October 1, 2022 (or, optionally, January 1, 2023). The per diem reimbursement rate for high-cost areas increases from $296 to $297 and from $202 to $204 for low-cost areas. There were also numerous changes to the areas that qualify as high-cost.

Description

High-cost area

Low-cost

area

Lodging, meals and incidentals

$297

(was $296)

$204

(was $202)

Meals and incidentals only

$74 (no change)

$64 (no change)

Incidental expenses only

$5

(no change)

$5

(no change)

The special meals and incidental expense (M&IE) rates for taxpayers in the transportation industry are $69 (unchanged) for any locality of travel in the continental United States (CONUS) and $74 (unchanged) for any locality of travel outside the continental United States (OCONUS). (See Revenue Procedure 2019-48.)

Note that transportation between places of lodging or business and places where meals are taken, and the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings, are no longer included in incidental expenses.

The per diem rates for each locality of travel in the continental United States (CONUS) can be found on the General Services Administration website. Per diem rates for travel outside of the continental United States (OCONUS) are available on the U.S. Department of Defense website. Foreign per diem rates can be found on the U.S. Department of State website.

For a chart of the localities considered high-cost, effective October 1, 2022, see the PDF attached to this Tax Alert.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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