• New per diem rates for substantiating the amount of travel expenses incurred in 1992 have been released by the IRS. The IRS allows taxpayers to substantiate the amount of their business expenses by using "per diem" (daily) rates. Taxpayers still must have records substantiating the date, place, and business purpose of each expense. There are separate rates for meals and lodging, and separate rates for "high-cost localities" and all other communities. The rates effective March 1, 1992, are summarized in the table below.
Per Diem Rates—March 1, 1992
|locality (destination of overnight travel)||lodging per diem rate||meals and incidental expense per diem rate||maximum per diem rate|
|all other localities||$67||$26||$93|
For a listing of "high-cost localities," see chapter 6 (Tables 6-6 and 6-7) in Richard Hammar's Church and Clergy Tax Guide, available from the publisher of this newsletter. As of March 1, 1992, the list of high-cost localities changes. Add to the list Keystone/Silverthorne (Colorado). Subtract from the list San Diego and Santa Barbara (California), Atlanta (Georgia), Annapolis (Maryland), Andover, Lowell, Quincy, and Plymouth (Massachusetts), Detroit (Michigan), and Princeton (New Jersey).
© Copyright 1992, 1998 by Church Law & Tax Report. All rights reserved. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Church Law & Tax Report, PO Box 1098, Matthews, NC 28106. Reference Code: m27 m07 c0592