Tax Blog

Last, year the IRS requested public comment on the continuing need for the high-low method for substantiating under IRC section 274(d), lodging, meal and incidental expenses incurred in traveling away from home. The IRS received no comments.

On July 19, 2011, IRS Announcement 2011-42 indicated that the IRS intends to discontinue authorizing the high-low substantiation method.  The IRS will publish a revenue procedure providing the general rules and procedures for substantiating lodging, meals, and incidental expenses incurred in traveling away from home (omitting the high-low substantiation method).   The IRS will publish a revenue procedure in subsequent years only when modifying the substantiation rules and procedures and will publish the special transportation rate in an annual notice.