Special transportation rates

[Gretel]

I am a little confused about the transition rules and couldn't find the answer in TTB either.

Per the MasterTaxGuide workers in the transportation industry cannot switch from the federal M&IE to the special transportation industry rates in the same calender year.

Per NSTP newlsetter: "The transition rules for transportation employes is stricter and requires that a taxpayer who used the federal rates for the first nine months of 2008 must continue to use those rates until January 1, 2009, when they can change to the updated rates".

I understand this (NSTP) to mean that if the transportation rates change on 10/1. they cannot use these rates until 1/1. of the next year, which doesn't make much sense to me since the only rates they could have used for the first nine months are the rates, which are in effect at that time.

Can someone clarify this, please?

[Bees Knees]

Rev. Proc. 2008-59, page 13:

(6) Transition rules. Under the calendar-year convention provided in section
4.04(3), a taxpayer who used the federal M&IE rates during the first 9 months of
calendar year 2008 to substantiate the amount of an individual's travel expenses under
sections 4.02 or 4.03 of Rev. Proc. 2007-63 may not use, for that individual, the special
transportation industry rates provided in this section 4.04 until January 1, 2009.
Similarly, a taxpayer who used the special transportation industry rates during the first 9
months of calendar year 2008 to substantiate the amount of an individual's travel
expenses may not use, for that individual, the federal M&IE rates until January 1, 2009.

I don't know the purpose of the rule, but that is the rule.

[Gretel]

Thanks, Bees. This is exactly what is in the MasterTaxGuide and this doesn't confuse me . So, I either misinterpret what they are saying in the NSTP newletter or they are saying something that is not correct.