IRS Announces Deduction for Business Meal Expenses
Temporary 100-percent deduction for business meal expenses.
In Notice 2021-25, the IRS and Treasury Department recently offered details and guidance on a provision in the COVID-19 relief package passed by Congress last December, which temporarily allows a 100 percent deduction for food or beverages from restaurants through the end of 2022.
The goal of the provision, included as part of the Taxpayer Certainty and Disaster Relief Act of 2020, is to help restaurants that have been hit hard by the pandemic while also giving businesses an expanded tax break for business meal expenses. The Notice is effective for amounts paid or incurred after December 31, 2020 and before January 1, 2023.
Visit the IRS Notice 2021-25 here for additional information.