AboutRichard Fritzler Expertise I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.
Experience Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com
Organizations National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute
Publications Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.
Question My past employer utilized a per diem structure by which he paid an average of the IRS designated amounts (ie,splitting the difference between min & max) regardless of location. He has conducted business in this manner for the last 30+yrs and was recently audited w/o consequence. Can you enlighten me as to the procedure by which he substantiates this practice???
Answer There is no "Minimum" / "Maximum" rate. The IRS has two rate schedules, the "Hi-low" schedule and "actual rate" schedule. You can choose either, but be consistent.
The business can choose any rate as long as it is less than or equal to the published per diem rate. The IRS limits any per diem to not exceed the per diem rates published.
As long as the paid per diem is less than a rate allowed by the IRS, there would be no problem.
So if the calculation was the difference between the actual rate, and the hi/low rate, it would still be less than the high-low rate.
