♠ Posted by Marc J. Soss in business meal deduction,IRS BUSINESS DEDUCTION,NEW IRS GUIDANCE ON 100% MEAL DEDUCTION
On April 8, the IRS released Notice 2021-25, which provided guidance in determining which meals may be fully deductible under the new IRS rules and which are remain subject to the fifty (50%) percent limitation. Under long-standing IRS rules, the deduction for food or beverage expenses is generally limited to fifty (50%) percent of the amount. In order to be deductible as a business meal, the food must not be lavish or extravagant or the taxpayer (or an employee of the taxpayer) must be present at the furnishing of such food or beverages.
The Consolidated Appropriations Act of 2021, expanded...