New Per Diem REV Ruling

If you use cents per mile instead of dollars per day for per diem, you should be aware of this new Revenue Ruling. The IRS expectation is for compliance and testing to see if the cents per mile for driver pay does not exceed the $52 dollars per day allowance. If you do not test and comply, by adding excess amounts paid back to the driver's W-2 then if audited, the IRS will disallow all per diem paid and tax the whole per diem amount as wages, and ask the employer for back payroll taxes. For complete copy of this Ruling contact Deanna Lovelady you can e-mail to deanna.lovelady@bellandcompany.net or call 501.753.9700.