IR-2020-225:IRS issues final regulations on the deduction for meals and entertianment

Internal Revenue Service (IRS) sent this bulletin at 09/30/2020 05:06 PM EDT

IRS Newswire

September 30, 2020

Issue Number: IR-2020-225

Inside This Issue

IRS issues final regulations on the deduction for meals and entertainment

WASHINGTON — The Internal Revenue Service issued final regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA).

The 2017 TCJA generally eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. However, taxpayers may still deduct business expenses related to food and beverages if certain requirements are met.

These final regulations address the disallowance of the deduction for expenditures related to entertainment, amusement or recreation activities, including the applicability of certain exceptions to this disallowance. They also provide guidance to determine whether an activity is considered entertainment. The final regulations also address the limitation on the deduction of food and beverage expenses.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

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IR-2020-225:IRS issues final regulations on the deduction for meals and entertianment

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Issue Number: IR-2020-225

Inside This Issue