An employee or self-employed individual is allowed a deduction
for the costs of meals and incidental expenses while traveling away
from home for business purposes. The deduction of these costs
usually requires the substantiation of the costs. However, there is
an optional method provided for these taxpayers that avoids keeping
receipts.
The IRS publishes
per diem rates that apply to different regions of the United
States (See Notice 2015–63 on irs.gov). Taxpayers can use
these per diem rates for purposes of calculating the meals and
incidental costs deduction and they will be presumed to be
substantiated.
The election is made by claiming the amount of the per diem
deduction on the taxpayer's timely filed return. The amounts
can only be claimed if the taxpayer is prepared to substantiate
time, place and purpose of the business travel in accordance with
IRS regulations. A separate statement, however, is not required to
make this election.
