The IRS announced that for employers using per diems to reimburse employee expenses, the entire reimbursement for business-travel-related meals and incidental expenses is deemed wages paid under a nonaccountable plan if the employer does not track the allowances and fails to require employees to substantiate expenses or pay back amounts in excess of deemed substantiated amounts. An accompanying IRS news release (IR-2006-175) clarifies that the ruling’s conclusions apply to any employer using per-diems to reimburse employee expenses. Rev. Rul. 2006-56, 2006-46 IRB .