IRS Issues Federal ‘High-Low’ Per Diem Rates Effective October 1
The IRS has released the optional “high-low” per diem rates for lodging expenses and meals and incidental expenses (M&IE) that may be used instead of the General Services Administration’s “actual” per diem rates for travel to locations within the continental U.S. (CONUS), the special federal M&IE per diem rates applicable to the transportation industry, and the per diem rate for incidental expenses. The updated high-low rates apply for travel undertaken on or after October 1, 2021 [Notice 2021-52, 9-3-21].
The “high” rate for lodging expenses and M&IE increases to $296 (from $292) for travel to any high-cost locality, while the “low” rate increases to $202 (from $198) for travel to any other locality within CONUS. The rates for M&IE increase to $74 (from $71) for high-cost localities and to $64 (from $60) for any other locality within CONUS.
Change to 2020 for Sedona, Ariz.
Notice 2021-52 modifies Notice 2020-71 for the specified period for which Sedona, Ariz., is a high-cost locality. The period is now: October 1-December 31, 2020; March 1-April 30, 2021; and September 1-30, 2021.
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Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.