Beech Trucking Company, Inc., Arthur Beech, Tax Matters Person - Page 10




                                       - 10 -                                         
          traveling away from home.5  Under one of the methods authorized             
          by the Revenue Procedures, an employee’s expenses for lodging,              
          meal, and incidental expenses while traveling away from home will           
          be deemed substantiated when “a payor (the employer, its agent,             
          or a third party) provides a per diem allowance[6] under a                  




               5 Rev. Proc. 94-77, 1994-2 C.B. 825, is effective for per              
          diem allowances paid on or after Jan. 1, 1995.  Rev. Proc. 96-28,           
          1996-1 C. B. 686, superseded Rev. Proc. 94-77, supra, for per               
          diem allowances paid on or after Apr. 1, 1996.  Rev. Proc. 96-28,           
          supra, restates verbatim the relevant sections of Rev. Proc. 94-            
          77, supra.  Subsequent citations to provisions of Prev. Proc. 96-           
          28, supra, will also refer to identical provisions of superseded            
          Rev. Proc. 94-77, supra.                                                    
               6 Rev. Proc. 96-28, sec. 3.01, 1996-1 C.B. at 687, defines a           
          “per diem allowance” as:                                                    
               a payment under a reimbursement or other expense                       
               allowance arrangement that meets the requirements                      
               specified in � 1.62-2(c)(1) and that is:                               
                    (1) paid with respect to ordinary and                             
                         necessary business expenses incurred, or                     
                         which the payor reasonably anticipates                       
                         will be incurred, by an employee for                         
                         lodging, meal, and/or incidental                             
                         expenses for travel away from home in                        
                         connection with the performance of                           
                         services as an employee of the employer,                     
                    (2) reasonably calculated not to exceed                           
                         the amount of the expenses or the                            
                         anticipated expenses, and                                    
                    (3) paid at the applicable Federal per diem                       
                         rate, a flat rate or stated schedule, or                     
                         in accordance with any other Service-                        
                         specified rate or schedule.                                  






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011