Tax Update

Tax Update

Meals & Entertainment Deductions
The Tax Cuts and Jobs Act made changes to the rules governing the destructibility of meals and entertainment expenses for businesses.  Essentially, entertainment expenses incurred or paid after December 31, 2017 are no longer deductible (previously deductible at 50% of the amount of the entertainment expenses incurred).  Whether and to what extent business meals remain deductible has been the subject of a lot of speculation absent any IRS guidance in this area.
Below are both the  IRS Information Release IR-2018-195 and Notice 2018-76 that sets forth guidance on the deduction for meals and entertainment following the new law changes. These informational releases are effective until the IRS issues proposed regulations clarifying when business meal expenses are deductible and what constitutes entertainment.  Please contact your trusted ATA advisor with questions. Your success is our mission. http://bit.ly/2PVODr6
IRS Information Release IR-2018-195 and Notice 2018-76