IRS Substantiating Requirements for Per Diems

Does your per diem rate fall under the local GSA rate for New York City? How about Oklahoma City? Do you have all the receipts you need for every employee’s business travel over the past year? Does your documentation meet all the substantiating requirements for tax purposes? For a company too busy doing business to keep up with all the IRS fine print, there is an easier way.

Use the high-low method so that you only have to set two per diems. Then use a corporate card, enabling you to access a detailed list of transactions. This way, you can automatically have a record of expenditures to substantiate meals and incidental expenses (M & IE) if you ever have an audit. There’s no more chasing down receipts or figuring out what is considered a “timely manner” for substantiation. Since all transactions are listed on the card statement, all you’ll ever have to do is produce those statements when the government comes knocking.

You need an accountable plan for monitoring business expenses and this is a great way to meet the IRS substantiating requirements for per diems.

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