The special per-diem rates for the fiscal year running from October 1, 2019 to September 30, 2020 has been released in Notice 2019-55.[1] The special rates governed by this Notice are:

The special transportation industry meal and incidental expenses (M&IE) rates,
The rate for the incidental expenses only deduction, and
The rates and list of high-cost localities for purposes of the high-low substantiation method.[2]

The special meals and incidental expense rates for the transportation industry for the period from October 1, 2019 to September 30, 2020 are $66 for any locality of travel in the continental United States (CONUS) and $71 for any locality outside the continental United States (OCONUS).[3]

The rate for incidental expenses for the period from October 1, 2019 to September 30, 2020 for the incidental expenses only deduction is $5 per day.[4]

For those using the high-low substantiation method, the rates will be $297 for any high cost locality and $200 to any other location within CONUS. Of that amount, $71 is treated as paid for meals and incidentals to a high cost locality and $60 for travel to any other locality within CONUS.[5]

The list of high cost localities can be found at Section 5.2 of the Notice.

The notice indicates that the following localities have been added to the list for the 2019/2020 fiscal year:

Mill Valley/San Rafael/Novato, California; Crested Butte/Gunnison, Colorado; Petoskey, Michigan; Big Sky/West Yellowstone/Gardiner, Montana; Carlsbad, New Mexico; Nashville, Tennessee; Midland/Odessa, Texas.[6]

As well, the following locations are having modifications made to the portion of the year they qualify for high cost status for the 2019/2020 fiscal year:

Napa, California; Santa Barbara, California; Denver, Colorado; Vail, Colorado; Washington D.C., District of Columbia; Key West, Florida; Jekyll Island/Brunswick, Georgia; New York City, New York; Portland, Oregon; Philadelphia, Pennsylvania; Pecos, Texas; Vancouver, Washington; Jackson/Pinedale, Wyoming.[7]

Finally, the following localities have been removed from the high cost list for 2019/2020:

Los Angeles, California; San Diego, California; Duluth, Minnesota; Moab, Utah; Virginia Beach, Virginia.[8]

[1] Notice 2019-55, September 25, 2019, https://www.irs.gov/pub/irs-drop/n-19-55.pdf, retrieved September 26, 2019

[2] Notice 2019-55, Section 1

[3] Notice 2019-55, Section 3

[4] Notice 2019-55, Section 4

[5] Notice 2019-55, Section 5.1

[6] Notice 2019-55, Section 5.3.a

[7] Notice 2019-55, Section 5.3.b

[8] Notice 2019-55, Section 5.3.c