SECTION 5. HIGH-LOW

SUBSTANTIATION METHOD

.01 In general . If a payor pays a per diem allowance in lieu of reimbursing actual lodging, meal, and incidental expenses

incurred or to be incurred by an employee for travel away from home and the payor uses the high-low substantiation method described in this section 5 for travel within CONUS, the amount of the expenses that is deemed substantiated for each calendar day is equal to the lesser of the per diem allowance for that day or the amount computed at the rate set forth in section 5.02 of this revenue procedure for the locality of travel for that day (or partial day, see section 6.04 of this revenue procedure). Except as provided in section 5.06 of this revenue procedure, this high-low substantiation method may be used in lieu of the per diem substantiation method provided in section 4.01 of this revenue procedure, but may not be used in lieu of the meal and incidental expenses only per diem substantiation method provided in section 4.02 of this revenue procedure.

.02 Specific high-low rates . Except as provided in section 5.06 of this revenue procedure, the per diem rate set forth in this

Key City County or other defined location

Arizona

Phoenix/Scottsdale Maricopa (January 1-March 31)

California

San Francisco San Francisco Santa Barbara Santa Barbara (July 1-August 31) Santa Monica City limits of Santa Monica South Lake Tahoe El Dorado (December 1-March 31)

Colorado

Aspen Pitkin (December 1-April 30) Crested Butte/Gunnison Gunnison (December 1-April 30) Steamboat Springs Routt (December 1-March 31) Telluride San Miguel (October 1-April 30) Vail Eagle (December 1-March 31)

District of Columbia

Washington D.C. (also the cities of Alexandria, Falls Church, and Fairfax, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George’s in Maryland) (See also Maryland and Virginia)

October 23, 2006 781 2006–43 I.R.B.

Key City County or other defined location

Florida

Fort Lauderdale Broward (January 1-March 31) Fort Walton Beach/DeFuniak Okaloosa and Walton Springs

(June 1-July 31) Key West Monroe Miami Miami-Dade (January 1-March 31) Naples Collier (February 1-March 31) Palm Beach

Palm Beach Boca Raton, Delray Beach, Jupiter, Palm

(February 1-March 31) Beach Gardens, Palm Beach, Palm Beach

Shores, Singer Island and West Palm Beach Stuart Martin (February 1-March 31)

(February 1-March 31)

Illinois

Chicago Cook and Lake

Louisiana

New Orleans

(October 1-May 31)

Maryland

Orleans, St. Bernard, Jefferson and Plaquemine Parishes

(For the counties of Montgomery and Prince George’s, see District of Columbia) Baltimore Baltimore City Cambridge/St. Michaels Dorchester and Talbot (May 1-August 31) Ocean City Worcester (June 1-September 30)

Massachusetts

Boston/Cambridge Suffolk, City of Cambridge Martha’s Vineyard Dukes (July 1-August 31) Nantucket Nantucket (October 1-November 30 and June 1-September 30)

New York

Floral Park/Garden City/Glen Cove/Great Neck/Roslyn

Nassau

Lake Placid Essex (July 1-August 31) Manhattan The Boroughs of Manhattan, Brooklyn, the Bronx and Staten Island Queens Queens Saratoga Springs/Schenectady Saratoga and Schenectady (July 1-August 31)

2006–43 I.R.B. 782 October 23, 2006

Key City County or other defined location

Pennsylvania

Philadelphia Philadelphia

Rhode Island

Jamestown/Middletown/ Newport

Newport

(October 1-November 30 and March 1-September 30) Providence Providence

Utah

Park City Summit (December 1-March 31)

Virginia

(For the cities of Alexandria, Falls Church, and Fairfax, and the counties of Arlington and Fairfax, see District of Columbia)

Washington

Seattle King

continue to use the high-low substantiation method for the remainder of calendar year 2006 for that employee. A payor described in the previous sentence may use the rates and high-cost localities published in section 5 of Rev. Proc. 2005–67, in lieu of the updated rates and high-cost localities provided in section 5 of this revenue procedure, for travel on or after October 1, 2006, and before January 1, 2007, if those rates and localities are used consistently during this period for all employees reimbursed under this method.