The IRS allows client and prospect business-meal deductions

Here’s good news from the IRS.

You read that right. Good news!

You see, in Notice 2018-76 the IRS states that client and prospect business meals continue as tax deductions under the Tax Cuts and Jobs Act.

As we’ve mentioned in past issues of the Tax Reduction Letter, the Tax Cuts and Jobs Act eliminated entertainment deductions. But thanks to Notice 2018-76, that’s changed. Which means now you can eat, drink, and be merry, while you dine.

You’ll get the whole story when you read my new article titled Tax Tips: IRS Says TCJA Allows Client and Prospect Business Meal Deductions.

Three ways our fact-filled article can help you:

1. We’ll explain the new IRS guidance in detail. Under the new guidance, you can deduct 50-percent of your client and prospect business meals if you meet five important criteria. We’ll tell you what they are and how to stay in Uncle Sam’s good graces when you read the full after-tax-reform article.
2. You’ll learn how to comply with two IRS requirements. (They shouldn’t be a problem.) Uncle Sam expects your business-meal entertaining to pass the “ordinary and necessary” test. But a business meal with a client or prospect can almost always be considered ordinary and necessary. Uncle Sam also frowns on entertainment that is “lavish or extravagant.” But the law doesn’t define these terms and no relevant court cases have been tried. We’ll give you all the facts when you read the full after-tax-reform article.
3. We’ll explain why documentation is so important. One thing that the IRS does insist on is solid documentation of your business meal activities. There are two easy steps you can take if you want to provide the IRS with the ironclad documentation it requires. We’ll tell you what they are when you read the full article.