Your voice has been heard!
Announcement from our national VP External Affairs, Joy Lutes:
IRS issues guidance on Tax Cuts and Jobs Act changes on business expense deductions for meals, entertainment
HUGE Thank you to Kathy Kildow Warnick, Sandra Clitter, Michele Schina and all NAWBO members who brought this to our attention.
Elle and I have mentioned the elimination of the meals and entertainment deduction in EVERY advocacy meeting we have taken the last several months.
We are happy to say the IRS has reversed the policy on the deductions!
From within the guidance – Taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact.
Here is the guidance:
https://www.irs.gov/pub/irs-drop/n-18-76.pdf
Here is the press release:
https://www.irs.gov/newsroom/irs-issues-guidance-on-tax-cuts-and-jobs-act-changes-on-business-expense-deductions-for-meals-entertainment