IRS Provides Interim Guidance on Expenses for Business Meals
Posted on Oct 3, 2018 in Individual Taxation
The Treasury Department and IRS issued Notice 2018-76, offering interim guidance under section 274 of the Code. The guidance provides that taxpayers may treat certain business meal expenses as non-entertainment and may continue to deduct 50 percent of food and beverage expenses associated with operating their business or trade, so long as the expenses are not extravagant and the taxpayer was present. Under section 274, taxpayers are prohibited from deducting expenses related to entertainment, amusement, or recreation. The IRS and Treasury Department intend to publish proposed regulations further clarifying which business meals constitute entertainment.
Read More: Notice 2018-76, Expenses for Business Meals Under Section 274e