IRS Issues Special Per Diems, High-cost Locales for FY 2019

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The Internal Revenue Service (IRS) updated its special per diem rates for the transportation industry, incidental expenses and the “high-low” substantiation method. These rates, announced September 26 in Notice 2018-77, apply to allowances paid to employees on or after October 1 for travel on or after that date.

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The IRS’ high-low rates, used by government travelers as an alternative to the U.S. General Services Administration’s (GSA) standard per diems, were raised slightly from the fiscal year 2018 levels—$287 for travel to any high-cost locality (up from $284) and $195 (formerly $191) for any

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