IRS Per Diem Rates

[jrgwmay]

When using the Internal Revenue Service per diem amounts for food and lodging, is it necessary to also maintain receipts showing the actual amounts of these expenses? My understanding is if you use the IRS per diem rates this should suffice for record keeping.

[ATSMAN]

You need documentation that the expense was used for business purpose. The $ is not important since the reimbursement is a per diem rate rather than actual expense amount.

[mastertaxguy]

Well, your understanding must be based on something not found in TTB. Particulary see TTB P. 8-2 (top of page) and p. 8-8 right column near bottom (heading: Lodging).

[ddoshan]

When using the Internal Revenue Service per diem amounts for food and lodging, is it necessary to also maintain receipts showing the actual amounts of these expenses? My understanding is if you use the IRS per diem rates this should suffice for record keeping.

Not sure just what situation you are referring to but .... Isn't it true that an employee or self-employed person cannot use per diem rates except possibly for meals. Are not per diem rates for employers who provide reimbursement for their employees via accountable plans.
If under an accountable plan thru an employer then no I believe you would not have to maintain receipts. But I would double check anyway.

[AJsTax]

Lodging

Lodging is handled differently by different types of taxpayers. Only an employer may use per diem to reimburse an employee for lodging using the per diem rates. A sole proprietor must use actual expenses, and of course have the paperwork to prove the expense.

[jsamans]

Not sure just what situation you are referring to but .... Isn't it true that an employee or self-employed person cannot use per diem rates except possibly for meals. Are not per diem rates for employers who provide reimbursement for their employees via accountable plans.
If under an accountable plan thru an employer then no I believe you would not have to maintain receipts. But I would double check anyway.

The lodging Per Diem rate is exclusively for use by employers in providing reimbursement and may not be used by a sole-proprietor, partner, LLC member, or employee (TTB 8-13). Self-employed persons and employees may use the Per Diem rates for non-reimbursed meals and incidentals (M&IE), reported as follows:

• On Schedule C for sole-proprietors and SMLLC members;
• On Schedule E as Unreimbursed Partner Expenses (UPE) for partners and MMLLC members, if and only if the partnership agreement/operating agreement requires that the partner or member incur the expense on an unreimbursed basis; and
• On Schedule A as an itemized deduction for employees, when not reimbursed by the employer (e.g. as part of travel costs associated with self-funded professional development expenses for the field in which the employee is currently employed).

Receipts are not required for M&IE (TTB 8-8).

Receipts are required for lodging reimbursement, even under an accountable plan (TTB 8-2; top-of-page notes).