Employee receives a per diem less than the IRS rate for his area. The employee is not required to account for expenses. Can the employee claim the difference between the rate paid and the IRS rate? Where in The Tax Book is per diem covered?
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I assume you mean a per diem for travel, lodging and meals here rather than for mileage. they are in TTB 8-12 and 8-13. If he can substantiate that he paid more than he is reimbursed then he gets to put the difference on 2106. Unless he is under DOT regulations the federal per diem rate has nothing to do with the matter (it determines if the employer plan is accountable or not, but that is all).
Now, if you meant mileage, then we're talking. He can put the whole amount on the 2106 and then put the reimbursement on Line 7. Essentially, he gets the difference between his employer's rate and the federal rate.
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