industry alert
September 26, 2013

Government Contracting & Engineering Industry Alert: Updated Per Diem Rates Released

David E. Shaffer, Director, Audit & Accounting

The IRS recently issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2013 and 2014 (Notice 2013-65). The notice provides the transportation industry meal and incidental expenses rates, the rate for the incidental-expenses-only deduction, and the rates and list of high-cost localities.

The updated rates are effective for per diem allowances paid to any employee on or after Oct. 1, 2013 and for travel away from home on or after that date. The updated rates supersede the rates in Notice 2012-63, which provided the rates for Oct. 1, 2012, through Sept. 30, 2013.

Additional details can be found on the U.S. General Services Administration’s website here.

If you have any questions or comments about this topic, please don’t hesitate to reach out to David Shaffer, Director, Audit & Accounting, at dshaffer@kmco.com or 215-441-4600, or Craig Evans, Manager, Audit & Accounting at cevans@kmco.com or 215-441-4600.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.