Tax planning, tax preparation and consulting are critical to your organizational and individual success. Our experienced team members are knowledgeable and responsive, offering customized, complete solutions designed around your industry, size, market and individual needs. Our veteran team members are trained and experienced in planning, preparing and consulting on the following types of returns:
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On October 3rd, the IRS issued guidance clarifying that taxpayers may deduct 50% of otherwise allowable business meal expenses associated with operating their business (Notice 2018-76). This deduction can be utilized under the following conditions:
- The expense is an ordinary and necessary business expense under sec. 162(a) paid or incurred during the taxable year in carrying on any trade or business;
- The expense is not lavish or extravagant under the circumstances;
- The taxpayer, or an employee of the taxpayer, is present at the furnishing of the food or beverages;
- The food and beverages are provided to a current or potential business customer, client, consultant, or similar business contact; and
- In the case of food and beverages provided during or at an entertainment activity, the food and beverages are purchased separately from the entertainment, or the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts.
The IRS will not allow the entertainment disallowance rule to be circumvented through inflating the amount charged for food and beverages.
Taxpayers can rely on the guidance in the notice until the IRS issues proposed regulations.
You can view the complete notice at: https://www.irs.gov/pub/irs-drop/n-18-76.pdf