I work as an independent contractor for only two different companies. My M&IE are paid with a per diem per out-of-town job (3 to 5 days max). I understood that since I am NOT an employee, the per diem was mine to use for the M&IE & that I did not have to produce receipts to justify my use. I also understood that the co. could use the per diem as their tax deduction & that I could not use any of the receipts toward my tax deductions. What the reality?

If you are paid per diem, you can not take tax deduction unless per diem payment is reported on your 1099-misc.