Federal Per Diem Payments

Many interstate motor carriers pay their drivers allowances for meals and incidentals while the drivers are traveling away from home on the job.  These per diems are not considered taxable wages to the drivers under federal tax law, but only if the carriers follow very carefully the complicated Internal Revenue Service regulations in this area.  Per diems are especially hard to keep track of if they are paid according to the miles a driver travels – as is commonly the case.  ATA, joined by a number of other trucking organizations, asked the IRS to consider establishing for the trucking industry a per-mile safe harbor for per diems, so that carriers could more easily comply with the tax rules.  IRS declined to consider such a change.  ATA is reviewing our legislative options.  Click here to see the ATA per diem submission to IRS.