2022-2023 Special Per Diem Rates

Notice 2022-44

use in substantiating the amount of ordinary and necessary business expenses incurred

while traveling away from home, specifically (1) the special transportation industry meal

and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only

deduction, and (3) the rates and list of high-cost localities for purposes of the high-low

substantiation method.

SEC

TION 2. BACKGROUND

R

ev. Proc. 2019-48, 2019-51 I.R.B. 1392 (or successor), provides rules for using a

per diem rate to substantiate, under § 274(d) of the Internal Revenue Code and

§ 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary

business expenses paid or incurred while traveling away from home. Taxpayers using

the rates and list of high-cost localities provided in this notice must comply with Rev.

Proc. 2019-48 (or successor). Notice 2021-52, 2021-38 I.R.B. 381, provides the rates

and list of high-cost localities for the period October 1, 2021, to September 30, 2022.

2019-48 (or successor).

ON 4. RATE FOR INCIDENTAL EXPENSES ONLY DEDUCTION

substantiation method) are $297 for travel to any high-cost locality and $204 for travel to

any other locality within CONUS. The amount of the $297 high rate and $204 low rate

that is treated as paid for meals for purposes of § 274(n) is $74 for travel to any high-

cost locality and $64 for travel to any other locality within CONUS. See section 5.02 of

Rev. Proc. 2019-48 (or successor). The per diem rates in lieu of the rates described in

Notice 2021-52 (the meal and incidental expenses only substantiation method) are $74

for travel to any high-cost locality and $64 for travel to any other locality within CONUS.

2. High-cost localities. The following localities have a federal per diem rate of $250

or more, and are high-cost localities for the specified portion of the calendar year:

October 1 - October 31 and

January 1 - September 30

October 1 – September 30

October 1 – October 31

March 1 – September 30

October 1 – September 30

a. The following localities have been added to the list of high-cost localities: Gulf

Shores, Alabama; Phoenix/Scottsdale, Arizona; San Luis Obispo, California;

Punta Gorda, Florida; Sarasota, Florida; Sebring, Florida; Stuart, Florida; Sun

Valley/Ketchum, Idaho; Portland, Maine; Mackinac Island, Michigan; Duluth,

Minnesota; Kalispell/Whitefish, Montana; Toms River, New Jersey; Glens Falls,

New York; Kill Devil Hills, North Carolina; Lincoln City, Oregon; Myrtle Beach,

South Carolina; Moab, Utah; Manchester, Vermont; Port Angeles/Port

Townsend, Washington.

b. The following localities have changed the portion of the year in which it is a high-

cost locality: Sedona, Arizona; Napa, California; San Diego, California;

Silverthorne/Breckenridge, Colorado; Fort Lauderdale, Florida; Fort Walton

The following locality has been removed from the list of high-cost localities:

Crested Butte/Gunnison, Colorado.

SEC

TION 6. EFFECTIVE DATE

This notice is effective for per diem

expenses, or for meal and incidental expenses only, that are paid to any employee on

or after October 1, 2022, for travel away from home on or after October 1, 2022. For

purposes of computing the amount allowable as a deduction for travel away from home,

this notice is effective for meal and incidental expenses or for incidental expenses only

2019-48 (or successor) for transition rules for the last 3 months of calendar year 2022.

Notice 2021-52 is superseded.

DRAFTING INFORMATION

The principal author of this notice is Knolan Smith of the Office of Associate Chief

Counsel (Income Tax & Accounting). For further information regarding this notice

contact Mr. Smith at (202) 317-7005 (not a toll-free call).