Translations from Your Trusted Advisor.
Today the IRS issued some highly anticipated guidance on the deductibility of business meals after the passing of the Tax Cuts and Jobs Act. The IRS still expects to publish proposed regulations but in the meantime, taxpayers can rely on Notice 2018-76.
The IRS has clarified that business meals continue to be 50% deductible, as long as the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered extravagant. Food and beverages provided during entertainment events will also continue to be deductible if they are purchased separate from the entertainment. For more information in a summary form see IRS News Release IR-2018-195.
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