IRS Approves New Per Diem Rates Effective October 1 2009

Courtesy of David and Mary Mellem, EAs

IRS has approved new per diem amounts for meals and lodging effective October 1, 2009. These are the same rates which the Federal government uses to reimburse Federal government employees and that we referred to in an email sent out on September 10, 2009.

Here are some of the changes:

M&IE rates increase to $46, 51, 56, 61, 66, and 71, a $7 increase over the previous rates. Therefore we will need to know if our clients incurred the M&IE expenses before October 1 (old rates from $39-$64) or after September 30 (new rates).

As we expected IRS raises the transportation industry amount to $59 for travel inside CONUS when the taxpayer is traveling among multiple per diem localities during the day. (Reminder: the allowable percentage of meals deductible for the transportation industry is 80% for 2008 and later years as previously set by Congress.) Again we will need to have a separate of the meals before October 1 and after September 30.

Some of the high-cost localities have changed for those employers using the High-Low Substantiation Method. Also as in past years, taxpayer have the choice of using the old or the new rates for the period from October 1st to December 31, 2009.

More details can be found at The per diem rates can be found at

This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (fax 920-496-9111),,

©2009 Ashwaubenon Tax Professionals. No reproduction of this article is permitted without the express consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way, Suite 1040, Green Bay, WI 54304.

DVDs CURRENTLY AVAILABLE ­ We have developed several DVDs on variouus tax topics. Our current list includes one on Recent Laws and Developments (taped September 2009), as well as several other topics listed below. Each DVD (other than the Ethics) is approximately 100 minutes in length and qualifies for 2 CPEs upon completion of the CPE exam with at least 70% accuracy. Each of the Ethics programs are approximately 50 minutes and qualify for 1 CPE upon completion of the CPE exam with at least 70% accuracy. We can send the text with the DVD in either paper or as a pdf copy on a CD (or email you the text as a pdf attachment). If you are interested, please contact our office for an order form or more information.

Topics available include Recent Laws & Developments, AMT, Death, Ethics, Form 1041, Form 4797, NOL, and more.