Daily Tax Report ®

CRS Report: Business Deductions for Meals, Entertainment Analyzed (IRC §274)

April 8, 2020, 5:00 AM

Possible rollback of 2017 TCJA restrictions on business entertainment discussed in a Congressional Research Service report released April 8. CRS noted that Congress has enacted legislation to help the economy and businesses deal with the impact of the coronavirus emergency. The TCJA generally disallowed any deduction for entertainment expenses and reduced the deduction for meals provided for the convenience of the employer to 50%, while largely retaining the broad 50% deduction for other business meals. CRS concludes that lifting the restrictions now would most likely be short-lived due to the social distancing restrictions in place. Additionally, the benefit of an...

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