Per Diems Post-Tax Reform: What the TCJA Has and Hasn’t Changed

Do you have employees who travel on business for your company?

Then you know that complicated recordkeeping is a royal pain in the neck for you and your employees.

What’s more, handling things the wrong way puts you at risk for an audit disallowance. Well, there’s a solution to these problems.

Consider using the IRS travel per diem method.

Want to learn how the per diem method can make your life a whole lot easier?

Read my new article Tax Tips: Per Diems Post-Tax Reform: What the TCJA Has and Hasn’t Changed.

Three ways our fact-filled article can help you:

1. We’ll explain some important tax-law history. The Tax Cuts and Jobs Act (TCJA) eliminates itemized deductions for employees who incur unreimbursed business expenses for years 2018 through 2025. This means that if you didn’t reimburse your employees for business expenses, your employees had no way of recouping any of that money via tax deductions. This is obviously extremely unfair, as you’ll learn when you read the full article.
2. We’ll show you how to make things right. The IRS travel per-diem rules let you reimburse expenses with less risk because they eliminate most of the paperwork. What’s more, specific rules set the amounts for reimbursements. This means you won’t have to worry about disagreements with your employees over what they’re owed. All will be explained when you read the full article.
3. We’ll give you full per-diem details that you really should know. The travel per diem rates fall into three categories. The current rates apply for tax years 2020, though you can use the 2021 rates for the last quarter of the year (when they’re posted on October 1, 2020). We’ll give you the exact dollar amounts when you read the full article.