Notice 2022-44
Internal Revenue Service
2022-41 I.R.B. 277
   
   
   
 2022-2023 Special Per Diem  Rates      
     
 Notice 2022-44      
     
SECTION 1. PURPOSE
   
This annual notice provides the 2022-2023 special per diem  rates for taxpayers to 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.
   
SECTION 2. BACKGROUND
   
Rev. 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.
   
SECTION 3. SPECIAL M&IE RATES FOR TRANSPORTATION INDUSTRY
   
The special M&IE rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS). See  section 4.04 of Rev. Proc. 2019-48 (or successor).
   
SECTION 4. RATE FOR INCIDENTAL EXPENSES ONLY DEDUCTION
   
The rate for any CONUS or OCONUS locality of travel for the incidental expenses only deduction is $5 per day. See  section 4.05 of Rev. Proc. 2019-48 (or successor).
   
SECTION 5. HIGH-LOW SUBSTANTIATION METHOD
   
1. Annual high-low rates. For purposes of the high-low substantiation method, the per diem  rates in lieu of the rates described in Notice 2021-52 (the per diem  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:   
     
                              
     
           
     
           
     
           
     
3. Changes in high-cost localities. The list of high-cost localities in this notice differs from the list of high-cost localities in section 5 of Notice 2021-52.
   
a. The following localities have been added to the list of high-cost localities: Gulf Shores, Alabama; Phoenix/Scottsdale, Arizona; San Luis Obispo, California; Durango, Colorado; Steamboat Springs, Colorado; Bradenton, Florida; Cocoa Beach, Florida; Gulf Breeze, Florida; Panama City, Florida; Pensacola, Florida; 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 Beach/De Funiak Springs, Florida; Key West, Florida; Bar Harbor/Rockport, Maine; Falmouth, Massachusetts; Martha's Vineyard, Massachusetts; Nantucket, Massachusetts; Jamestown/Middleton/Newport, Rhode Island; Charleston, South Carolina; Park City, Utah; Jackson/Pinedale, Wyoming.
   
c. The following locality has been removed from the list of high-cost localities: Crested Butte/Gunnison, Colorado.
   
SECTION 6. EFFECTIVE DATE
   
This notice is effective for per diem  allowances for lodging, meal and incidental 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 paid or incurred on or after October 1, 2022. See  sections 4.06 and 5.04 of Rev. Proc. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2022.
   
SECTION 7. EFFECT ON OTHER DOCUMENTS
   
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 number).