Did Tax Reform Goof When Disallowing Deductions for Client Meals?

In recent days, we learned that lawmakers did not intend to eliminate business meals with clients and prospects.

We’re not exactly sure how lawmakers can undo what they’ve done to the tax code in this area, but experience says that if there’s a will, there’s a way.

We think it may take a technical correction to the tax code, but some speculate that you could get this done with a Joint Committee on Taxation Bluebook explanation.

You can dig down on this development when you read my new article Tax Tips: Did Tax Reform Goof When Disallowing Deductions for Client Meals?

Three ways our fact-filled article can help you:

1. We’ll tell you the good news we just learned. Recently, we found evidence that lawmakers didn’t intend to eliminate deductions for business meals with clients and prospects. When will our legislators make their intentions crystal clear? Well, we can’t be sure at the moment but you can expect a Joint Committee on Taxation Bluebook explanation or a technical correction down the road. You’ll get the whole story when you read the new tax reform article.
2. We’ll explain how the Tax Reform Act of 1986 continues to play into the 2018 business-meal deduction legislation. To help you understand the law and put things in context, we’ll review Section 274(k)(1) and Section 274(n)(1) of the tax code. Both sections deal with business-meal and entertainment deductions and it’s important to understand them. We’ll make everything clear when you read the full tax reform article.
3. We’ll tell you what you should be doing now about writing off business meals. Based on what we know from reliable sources, you should proceed as if business meals with clients and prospects are deductible and you should document them accordingly with the usual components of who, where, and why. We’ll give you full details when you read the full article.