SECTION 5. HIGH-LOW

SUBSTANTIATION METHOD

1. Annual high-low rates . For purposes of the high-low substantiation method, the per diem rates in lieu of the rates described in section 4.01 of Rev. Proc. 2011–47 (the per diem substantiation method) are $242 for travel to any high-cost locality and $163 for travel to any other locality within CONUS. The amount of the $242 high rate and $163 low rate that is treated as paid for meals for purposes of § 274(n) is $65 for travel to any high-cost locality and $52 for travel to any other locality within CONUS. See section 5.02 of Rev. Proc. 2011–47. The per diem rates in lieu of the rates described in section 4.02 of Rev. Proc. 2011–47 (the meal and incidental expenses only substantiation method) are $65 for travel to any high-cost locality and $52 for travel to any other locality within CONUS.

2. High-cost localities . The following localities have a federal per diem rate of $202 or more, and are high-cost localities for all of the calendar year or the portion of the calendar year specified in parentheses under the key city name.

Key City County or other defined location

Arizona

Sedona City limits of Sedona (March 1-April 30)

California

Monterey Monterey Napa Napa (October 1-November 30 and April 1-September 30) San Diego San Diego San Francisco San Francisco Santa Barbara Santa Barbara Santa Monica City limits of Santa Monica Yosemite National Park Mariposa (June 1-August 31)

October 15, 2012 496 2012–42 I.R.B.

Key City County or other defined location

Colorado

Aspen Pitkin (December 1-March 31 and June 1-August 31) Denver/Aurora Denver, Adams, Arapahoe, and Jefferson Steamboat Springs Routt (December 1-March 31) Telluride San Miguel (December 1-March 31) Vail Eagle (December 1-August 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)

Florida

Fort Lauderdale Broward (January 1-May 31) Fort Walton Beach/De Funiak Springs Okaloosa and Walton (June 1-July 31) Key West Monroe Miami Miami-Dade (December 1-March 31) Naples Collier (January 1-April 30)

Illinois

Chicago Cook and Lake (October 1-November 30 and April 1-September 30)

Louisiana

New Orleans Orleans, St. Bernard, Jefferson and (October 1-June 30) Plaquemine Parishes

Maine

Bar Harbor Hancock (July 1-August 31)

Maryland

Baltimore City Baltimore City (October 1-November 30 and March 1-September 30) Cambridge/St. Michaels Dorchester and Talbot (June 1-August 31) Ocean City Worcester (June 1-August 31) Washington, DC Metro Area Montgomery and Prince George’s

Massachusetts

Boston/Cambridge Suffolk, City of Cambridge Falmouth City limits of Falmouth (July 1-August 31)

2012–42 I.R.B. 497 October 15, 2012

Key City County or other defined location

Martha’s Vineyard Dukes (July 1-August 31) Nantucket Nantucket (June 1-September 30)

New Hampshire

Conway Carroll (July 1-August 31)

New York

Floral Park/Garden City/Great Neck Nassau Glens Falls Warren (July 1-August 31) Lake Placid Essex (July 1-August 31) Manhattan (includes the boroughs of Manhattan, Brooklyn, the Bronx, Queens Bronx, Kings, New York, Queens, and Staten Island) Richmond

Saratoga Springs/Schenectady Saratoga and Schenectady (July 1-August 31) Tarrytown/White Plains/New Rochelle Westchester

North Carolina

Kill Devil Dare (June 1-August 31)

Pennsylvania

Philadelphia Philadelphia

Rhode Island

Jamestown/Middletown/Newport Newport (October 1-October 31 and May 1-September 30)

Utah

Park City Summit (January 1-March 31)

Virginia

Washington, DC Metro Area Cities of Alexandria, Fairfax, and Falls Church; counties of Arlington and Fairfax

Virginia Beach City of Virginia Beach (June 1-August 31)

Washington

Seattle King

Wyoming

Jackson/Pinedale Teton and Sublette (July 1-August 31)

3. Changes in high-cost localities . There are no changes in the list of

high-cost localities in this notice from the list of high-cost localities in section 5 of Notice 2011–81.

October 15, 2012 498 2012–42 I.R.B.

DRAFTING INFORMATION

The principal author of this notice is Eric D. Brauer of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice, contact Mr. Brauer at (202) 622–4970 (not a toll-free call).