IRS Issues Optional High-Low or Special Per Diem Rates for 2017-2018

Employers who prefer to use per diem allowances to reimburse employees for domestic travel, may use the IRS’s optional ‘high-low’ rates. These rates can be more generous than the regular per diem rates. The high-low per diem rates are effective October 1, 2017 through September 30, 2018.

An employer that prefers to use the high-low rates must comply with IRS Revenue Procedure 2011-47 (2011-42 I.R.B. 520). The Revenue Procedure provides the general rules for using the optional per diem rates to substantiate an employee’s lodging, meal and incidental expenses, or meal and incidental expenses only.

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