IRS Gives Taxpayers A Break on Meal Deductions

On October 3, 2018, the IRS issued Notice 2018-76 confirming that certain business meals will continue to be deductible, subject to the 50% limitation. As background, the Tax Cuts and Jobs Act (“TCJA”) of December 2017 eliminated the deduction for entertainment expenses effective January 1, 2018, creating uncertainty whether client business meals would be treated as a form of nondeductible entertainment. The clarification provided by the IRS is welcome news for taxpayers with significant business meal expenditures, and taxpayers can rely on the notice until proposed regulations are issued.

For further details regarding these changes, click here.

If you have questions about how this new guidance concerning the deductibility of business meals might affect you and your business, please contact your Bennett Thrasher tax advisor by calling 770.396.2200.