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This publication is for employers who pay a per diem allowance to employees for business travel away from home on or after October 1, 2001, within the continental United States (CONUS). It gives the maximum per diem rate you can use without treating part of the per diem allowance as wages for tax purposes. For a detailed discussion on the tax treatment of a per diem allowance, see chapter 13 of Publication 535, Business Expenses, or Revenue Procedure 2001-47, 2001-42 I.R.B. 332.
High-low method. Table 1, Localities Eligible for $204 ($42 M&IE) Per Diem Amount Under the High-Low Substantiation Method, lists the localities that are treated under that method as high cost localities for all or part of the year as shown in column 4. Table 1 begins on page 2. All other localities within CONUS are eligible for $125 ($34 meals and incidental expenses (M&IE)) per diem under the high-low method.
Regular federal per diem rate method. Table 2, Maximum Federal Per Diem Rates, gives the regular federal per diem rates published in the Federal Register by the General Services Administration (GSA). It includes the separate rate for meals and incidental expenses (M&IE) for each locality. Table 2 begins on page 4. The standard rate for all locations within CONUS not specifically listed in Table 2 is $85 ($55 for lodging and $30 for M&IE). A federal agency can ask GSA to review the per diem rate in a particular locality. The process is described in footnote 4 of the table.
The lodging rates for approximately 60 cities listed in this publication may change later in 2002. To be sure you have the most current rate, check the Internet (see Per diem rates on the Internet, later) or call the IRS at 1-800-829-1040.
Travel outside CONUS. The federal per diem rates for localities
outside CONUS, including Alaska, Hawaii,
Per diem rates on the Internet. You can access the federal per diem rates on the Internet at www.policyworks.gov/perdiem.
Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.
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How To Get Tax Help
You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. By selecting the method that is best for you, you will have quick and easy access to tax help.
The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.
To contact your Taxpayer Advocate:
For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS.
Free tax services. To find out what services are available, get Publication 910, Guide to Free Tax Services. It contains a list of free tax publications and an index of tax topics. It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics.
Personal computer. With your personal computer and modem, you can access the IRS on the Internet at www.irs.gov. While visiting our web site, you can:
You can also reach us with your computer using File Transfer Protocol at ftp.irs.gov.
TaxFax Service. Using the phone attached to your fax machine, you can receive forms and instructions by calling 703-368-9694. Follow the directions from the prompts. When you order forms, enter the catalog number for the form you need. The items you request will be faxed to you.
For help with transmission problems, call the FedWorld Help Desk at 703-487-4608.
services are available by phone.
Walk-in. You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Some IRS offices, libraries, grocery stores, copy centers, city and county governments, credit unions, and office supply stores have an extensive collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes.
Mail. You can send your order for forms, instructions, and publications to the Distribution Center nearest to you and receive a response within 10 workdays after your request is received. Find the address that applies to your part of the country.
can order IRS Publication 1796, Federal Tax Products on CD-ROM, and obtain:
The CD-ROM can be purchased from National Technical Information Service (NTIS) by calling 1-877-233-6767 or on the Internet at www.irs.gov. The first release is available in mid-December and the final release is available in late January.
IRS Publication 3207, Small Business Resource Guide, is an interactive CD-ROM that contains information important to small businesses. It is available in mid-February. You can get one free copy by calling 1-800-829-3676 or visiting the IRS web site at www.irs.gov.