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applicable revenue procedures, taxpayers may elect to use, in
lieu of substantiating actual expenses, certain authorized
methods for deemed substantiation of employee lodging, meal, and
incidental expenses incurred while traveling away from home.
Rev. Proc. 2002-63, sec. 1, 2002-2 C.B. at 691, and Rev. Proc.
2003-80, sec. 1, 2003-2 C.B. at 1037, each provide the following
introduction:
SECTION 1. PURPOSE
This revenue procedure updates * * * [the previous
revenue procedure relating to per diem allowances] by
providing rules under which the amount of ordinary and
necessary business expenses of an employee for lodging,
meal, and incidental expenses or for meal and
incidental expenses incurred while traveling away from
home will be deemed substantiated under section 1.274-5
of the Income Tax Regulations when a payor (the
employer, its agent, or a third party) provides a per
diem allowance under a reimbursement or other expense
allowance arrangement to pay for the expenses. In
addition, this revenue procedure provides an optional
method for employees and self-employed individuals who
pay or incur meal costs to use in computing the
deductible costs of business meal and incidental
expenses paid or incurred while traveling away from
home. This revenue procedure also provides an optional
method for use in computing the deductible costs of
incidental expenses paid or incurred while traveling
away from home by employees and self-employed
individuals who do not pay or incur meal costs and who
are not reimbursed for the incidental expenses. Use of
a method described in this revenue procedure is not
mandatory, and a taxpayer may use actual allowable
expenses if the taxpayer maintains adequate records or
other sufficient evidence for proper substantiation.
* * *
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Last modified: March 27, 2008