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Dutch-Treat Business Meals Are Back Again–But Beware

August 23, 2023

“Dutch-Treat Business Meals
Are Back Again–But Beware!”

To get my complete, FREE article
with all the details…

Let’s say you go out for a Dutch-treat lunch with a colleague.

All is going well when you remember that deductions for your meal may be disallowed.

This could happen thanks to the Sutter and Fenstermaker court cases.

What is the Sutter all about?

What makes Sutter so unpleasant is that you actually face two opposite tax rulings:

  • The law that denies your deductions for personal living expenses (food)
  • The law that allows business meals as tax deductions

This conflict is known as the Sutter rule.

Tax professionals know this conflict well. It’s named after Dr. Sutter, who had a very tough time with the Tax Court.

You see, the IRS invokes the Sutter rule at its whim. No standards exist, other than your “abuse” in the eyes of the IRS.

The triggers that put the Sutter rule into action.

Targets include the wrong types of business meals and/or too many business meals that you deduct. The problem: there is no definition of “too many.”

Be aware. If you don’t know how to handle the Sutter rule, you may find yourself in the soup.

You can actually put up a strong defense.

You can use logic or legislation to help you out. All will be explained when you read my new article.

IMPORTANT: Document your business meals.

You need records that prove your business meals are ordinary and necessary business expenses.

You meet the rules when you have a receipt, proof of payment, name(s) of the person or people with whom you dined, and a record of the business reason for the meal.

Does all this information need elaboration? You bet it does and I’ll make everything clear when you…

CLICK HERE and read my completely new article titled:

“Dutch-Treat Business Meals
Are Back Again–But Beware!”

Filed Under: Featured Articles, Legislation, Receipts, Records, Tax Planning

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