According to the IRS>>>>>>>>>>>>>

OK can we please stop calling it per diem? Truckers don't get per diem in the same sense that everyone else uses; we get the standard meal allowance which covers only meals and incidental expenses (tips). It does not include showers, laundry, hotels*, etc. Those can all be deducted in addition to the standard meal allowance.

*If the hotel includes meals, that portion of the hotel bill is not deductible if you concurrently claim the SMA.

 

You always crack me up...

per diem=per day

standard meal allowance is the alternative method to recording actual expenses. In most cases, you're still limited to the per diem rate. Everyone claiming travel is under the same rules with some exceptions. US26 ss 274 (n)(3)(A) &(B) specifically is the exceptions for individuals subject to the "DOT hours of service regulations".

The only thing different from truckers and everyone else is the percentage of the daily rate is increased in (A) and increased further over a few years (B).

 

Obviously.

When used by tax professionals, "per diem" includes lodging & meals. What truckers call per diem (80% of $59/day) covers only meals.

 

Good luck,I imagine it could be anyone of us in your shoes.

And for the record,my name is John Doe and I live in LA. lol

 

Company drivers can write off a portion of cell phone bill. If the company you work for doesn't have qual com in the truck I've been writing it off for years now nobody even questiones it.

 

http://www.irs.gov/pub/irs-pdf/p463.pdf

You fall under the Transportation part - MI&E, not per diem.

Page 6, middle column, towards the bottom. "For both the day you depart and the day you return from a business trip, you must prorate the Standard Meal Allowance."

They are correct. Since you left Sunday (after midnight), you only rate a prorated portion. Wed since you got back before midnight you only rate a prorated portion. Even if you got back after Midnight you would rate a full day for Wed and a prorated portion for Thurs.

80% of the $59 for the full days away.
75% of the $59 for the returning/leaving.


Cell phones - figure out the % of business calls versus % personal calls and then times the % against your base bill. Even if you have a QC, you cannot call a customer on the QC.

 

This is one of those areas where being a corporation has it's advantages. The corporation provides the cell phone, the XM radio subscription, the internet connection, the per diem, the shower costs as an employee expense reimbursement.

 

I can't see them making an issue out of the per diem, unless you are getting per diem pay from your company. The code is quite clear, that drivers are allowed a per diem deduction. As far as cellphones, according to the tax code, you can deduct half of the bill, and 100% of the device price.
This is something any agent would know. So I suggest checking this ladies credentials, or being open with her. If you are recieiving per diem through your company, tell her it was a mistake and you didn't know. As others said, get a tax attorney.
In the future, keep all receipts, and detail them, also get your logs, and medical bills ready. And for GODS sake, don't do your own taxes if you are itemizing.
Any reputable tax accountant would go to court if their prepared returns are questioned.