The IRS released the 2014-2015 per diem rates for substantiating employees’ business expenses under IRC Sec. 274(d) for lodging, meals, and incidental expenses incurred while traveling away from home. The Meal and Incidental Expense (M&IE) rates for the transportation industry remain unchanged at $59 for travel in the continental U.S. and $65 outside the continental U.S. The per diem for travel to high-cost localities increases by $8 to $259 ($65 for M&IE), while the rate for travel to other localities increases by $2 to $172 ($52 for M&IE). The incidental-expenses-only rate remains at $5 per day. The updated rates and list of high-cost locations apply to per diem allowances paid to employees after 9/30/14. Notice 2014-57, 2014-41 IRB