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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1996-1 C. B. 686, superseded Rev.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28, supra, will also refer to identical provisions of superseded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.
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