October 4, 2018
By Stephanie Cumings
Published in Tax Notes
Taxpayers might not be prepared to separately document meals this year as required by new guidance on the business meals deduction, according to practitioners.
Whether client business meals would still be deductible was “the big issue” coming out of the 2017 tax law’s changes to meals and entertainment, Michael L. Hadley of Davis & Harman LLP told Tax Notes.
An October 3 IRS notice makes clear that those meals will continue to be 50 percent deductible, but it requires, among other things, that meals provided during an entertainment activity be separately billed.
Employers will need to look at how they’ve tracked their spending, and they may have to reconstruct some invoices this year to meet the new substantiation requirement, Hadley said. Ruth M. Wimer of Winston & Strawn LLP agreed that properly documenting meal expenses could be an issue.
Under the prior law, both meals and […]