Per Diem Reimbursements of Employee Expenses

Written by Reed Tinsley | November 13, 2006

The IRS announced that for employers using per diems to reimburse employee expenses, the entire reimbursement for business-travel-related meals and incidental expenses is deemed wages paid under a nonaccountable plan if the employer does not track the allowances and fails to require employees to substantiate expenses or pay back amounts in excess of deemed substantiated amounts. An accompanying IRS news release (IR-2006-175) clarifies that the ruling's conclusions apply to any employer using per-diems to reimburse employee expenses. Rev. Rul. 2006-56, 2006-46 IRB .

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

Have questions? I’m here to help.

Categories
Accounting and Tax Services Litigation Support Managed Care Consulting Managed Care Contract Negotiations Medical Practice and Healthcare Entity Valuation Medical Practice Assessment Medical Practice Brokerage Medical Practice Embezzlement Consulting Medical Practice Management Medical Practice Merger Advice Medical Strategic Planning Newsletter Personal Financial Planning Oversight Physician Compensation Models Physician Compliance Physician Financial Management Services Retirement Uncategorized