Kearney NE Tax Preparer New IRS Regulations On Meal Deductions 2018 Announced

Kearney tax preparer General Business Services announces the latest update by the IRS to the business meals deduction for 2018 giving taxpayers some much needed guidance.

Kearney, United States - December 11, 2018 /PressCable/ —

General Business Services, an accounting and tax preparation company based in Kearney, Nebraska, announced the IRS issued guidance clarifying that taxpayers may generally continue to deduct 50% of the food and beverage expenses associated with operating their trade or business, despite changes to the meal and entertainment expense deduction under Sec. 274 made by the tax law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (Notice 2018-76).

More information can be found at Kearney Accountant.

Under the interim guidance, taxpayers may deduct 50% of an otherwise allowable business meal expense if:

The expense is an ordinary and necessary business expense under Sec. 162(a) paid or incurred during the tax year when 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 when the food or beverages are furnished;

The food and beverages are provided to a current or potential business customer, client, consultant, or similar business contact;

For food and beverages provided during or at an entertainment activity, they 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.

The notice contains three examples illustrating how the IRS intends to interpret these rules. All three examples involve attending a sporting event with a business client and having food and drink while attending the game. The examples follow the AICPA’s recommendation that meal expenses be deductible when their costs are separately stated from the cost of the entertainment.

The IRS plans to issue proposed regulations and is requesting comments by Dec. 2 on the notice.

A spokesperson for the company said: “A tax and accounting firm is known for its ability to stay up to date with changes issued by the IRS. Our firm’s reputation reflects the high standards we demand of ourselves. Our primary goal as a trusted tax advisor is to be available and to provide insightful advice to enable our clients to make informed financial decisions. We do not accept anything less from ourselves and this is what we deliver to our clients.”

Interested parties can find more information by visiting the above-mentioned website.

Contact Info:
Name: Mick Unick
Email: Send Email
Organization: General Business Services
Address: 4009 6th Ave Ste 30, Kearney, NE 68845, United States
Phone: +1-308-236-5716
Website: http://kearneyaccountant.com/

Source: PressCable

Release ID: 423161