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2007 IRS Rules for Business Travel (Overview)

Carpe Per DiemThe IRS rules for business travel have been revised for 2007, including per diem and mileage rates.

Per Diem Rates – The 2007 Per Diem Rates are as follows:

High Cost Destinations – $246.00.
Low Cost Destinations – $148.00 a day

These rates are valid until September 30, 2007, which is the end of the government’s fiscal year. According to IRS Ruling 2006-56, if you exceed the Per Diem rate, you are REQUIRED to substantiate your expenses in order to be reimbursed. If you don’t, your employer can tax you for the amount exceeding the published Per Diem rates. This means if you plan to exceed the amounts listed above, keep your receipts. If your travel is less than or equal to the published rates, you’re in the clear.

Mileage Rates – Beginning January 1, 2007, the IRS standard mileage rate will rise from 44.5 cents per mile to 48.5 cents per mile. Much like the Per Diem rate, the mileage rate is subject to fluctuation during the year if there is a significant increase in petroleum prices. As of now, the rate will be 48.5.

For city specific information, please check here.

International Per Diem rates are supposed to be updated monthly by the Department of State at this site. When I tried the site it was unavailable. For the most recent international Per Diem rates at the time this post was written, check here. You’ll have to scroll down a little bit.

Carpe Per Diem. Seize the $246 a Day…