December 2002
Deductible Business Travel Expenses
Revenue Procedure 2002-63 provides updated information on rules for per diem allowances and optional methods for computing deductible business travel costs, including transition rules for the last three months of 2002.
Generally, an employee or self-employed individual may deduct certain business expenses paid or incurred while traveling away from home. To simplify recordkeeping, the IRS considers expenses that do not exceed certain per diem allowances to be substantiated for accounting purposes.
For details on Revenue Procedure 2002-63, go to the IRS tax professionals page at http://www.irs.gov/taxpros. Click on “more topics,” then “advance notice for tax professionals.” The Revenue Procedure is also available in Internal Revenue Bulletin 2002-41, dated October 15, 2002.
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