In Announcement 2011-42, Discontinuance of High-Low Method for Substantiating Travel Expenses, the Internal Revenue Service (IRS) announced its intention to discontinue authorizing the high-low substantiation method.

No Comments Received on Proposed Change

In Rev. Proc. 2010-39, 2010-42 IRB 459, the IRS requested public comment on the continuing need for the high-low method for substantiating, under §274(d) of the Internal Revenue Code, lodging, meal, and incidental expenses incurred in traveling away from home. The IRS received no comments.

New Revenue Procedure Will Provide General Rules

In 2011, the IRS plans to publish a revenue procedure providing the general rules and procedures for substantiating lodging, meal, and incidental expenses incurred in traveling away from home (omitting the high-low substantiation method).

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Contact Vision Payroll if you have any questions on the discontinuance of high-low method for substantiating travel expenses