The IRS has released Proposed Regulations (1.162-24) affecting state legislators who elect to treat their place of residence within their district as their home for tax purposes.
The election is available to legislators whose place of residence is more than 50 miles from the state capitol building. By making this election, a state legislator is considered to be traveling away from home for each legislative day. For this purpose, the legislator is deemed to have expended for living expenses on each legislative day (1) the greater of the amount generally allowable for the day under the state per diem rate, (up to 110% of the Federal per diem rate for the location), or (2) the Federal per diem rate for the location.
A legislative day occurs if the legislature is in session, or the legislature is not in session but the physical presence of the electing legislator is formally recorded at a meeting of a committee of the legislature.
Public comment is invited. For instructions on making the election, the text of the Proposed Regulations, and information on how to submit comments, click here.
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