Question

If an employer chooses a per diem method of substantiation for travel expenses, a. The Regular Federal Rate method allows employees the same per diem rate no matter where they travel in the United States. b. Actual expense records substantiating the business reason for the trip and the dates of arrival and departure are not required. c. The meals and incidental expenses method requires actual cost records to substantiate lodging expenses. d. The employer need not use an accountable plan for reimbursing employees for travel expenses. e. The high-low method averages the high-cost locality and low-cost locality per diem rates to arrive at an average rate.

Answer 1

If an employer chooses a per diem method of substantiation for travel expenses, the meals and incidental expenses method requires actual cost records to substantiate lodging expenses.

The price of the meal and the additional expenses while travelling away from home for work purposes is deducted from an employee or self-employed person. The expense deduction generally requires the costs to be substantiated. There has been, however, an optional form that prohibits receipts for these taxpayers. If an employer wants a method of proof of travel expenses by Diem, the meal and by-product procedure requires real cost records in order to prove accommodation expenses. Thus Option C.