The IRS has 
announced that it intends to discontinue authorizing the high-low per diem method for substantiating lodging, meal, and incidental expenses incurred in traveling away from home. Later in 2011, the IRS plans to publish a revenue procedure providing the general rules and procedures for substantiating these expenses that would omit the high-low substantiation method and a notice providing the special transportation rate. Ann. 2011-42.
Part IV – Items of General Interest
Discontinuance of High-Low Method for Substantiating Travel Expenses
Announcement 2011-42
In Rev. Proc. 2010-39, 2010-42 I.R.B. 459, the Internal Revenue Service
requested public comment on the continuing need for the high-low method for
substantiating, under § 274(d) of the Internal Revenue Code, lodging, meal, and
incidental expenses incurred in traveling away from home. The Service received no
comments.
Accordingly, the Service intends to discontinue authorizing the high-low
substantiation method. In 2011, the Service plans to publish a revenue procedure
providing the general rules and procedures for substantiating lodging, meal, and
incidental expenses incurred in traveling away from home (omitting the high-low
substantiation method). The Service will publish a revenue procedure in subsequent
years only when modifying the substantiation rules and procedures and will publish the
special transportation rate in an annual notice.
For additional information regarding this announcement, contact Karla M. Meola
of the Office of Associate Chief Counsel (Income Tax and Accounting) at (202) 622-
4930 (not a toll-free call).
