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Topic: Sequential project per diem taxability 

1.  Sequential project per diem taxability

Posted 02-13-2018 07:01
IRS rules dictate that per diem lasting one year or longer on a single project is taxable to the individual.  There is a complicating scenario where an individual works on multiple projects, one after the other, for the same employer, where no project lasts a year, but the sequence of projects total more than one year's time. The question is: What are the geographic requirements (distance between projects) that would make them taxable, or conversely, how far apart must they be to be considered non-taxable. There is a tax court ruling that concluded that several projects in "southern  California" were to be considered as one for taxability purposes. Any guidelines willing to be shared will be greatly appreciated. Thanks.

Thomas McBride CPA, CIA, CISA
Director-Internal Audit
Shawmut Design and Construction
Boston MA
(617) 622-7460