The Internal Revenue Service recently issued a Notice (Notice 2018-76) regarding the deductibility of business meal expenses under the new Tax Act. The Notice may be relied on until proposed regulations are published. The Notice provides that most business meal expenses will be 50 percent deductible as long as a separate invoice is provided for the food. The new Tax Act prohibits the deduction of entertainment expenses. It has been unclear until this Notice whether business meals involving a client or a potential client would fall into the entertainment expense category. As such, until the proposed regulations are published, a
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