2023 Business Meals & Entertainment Expense - IRS Deduction
November 8, 2023
The IRS Updates the 2023 Meals & Expense Deduction
As part of the Consolidated Appropriations Act signed into law on December 27, 2020, the deductibility of meals is changing. Food and beverages will be 100% deductible if purchased from a restaurant in 2021 and 2022.
This applies to filing your taxes in 2023.
But for purchases made in 2023 onwards, the rules revert back to how they were defined in the Tax Cuts and Jobs Act. This means purchases at restaurants are no longer 100% deductible.
Here’s a breakdown of meal deductions using examples:
Fully Deductible Meals & Entertainment
Common examples of 100% deductible meals and entertainment expenses:
- A company-wide holiday party
- Food and drinks provided free of charge for the public
- Food included as taxable compensation to employees and included on the W-2
Common examples of 50% deductible expenses:
- A meal with a client where work is discussed (that isn’t lavish)
- Employee meals at a conference, above and beyond the ticket price
- Employee meals while traveling (here’s how the IRS defines “travel”)
- Treating a few employees to a meal (but if it’s at least half of all employees, it’s 100 percent deductible)
- Food for a board meeting
The Internal Revenue Service has launched a new feature that will give taxpayers digital control over who can represent them or view their tax records.
The new feature is one of many recent enhancements to the Online Account for individuals. It will allow individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with a Tax Information Authorizations (TIA).
When the IRS needs to ask a question about a taxpayer’s tax return, notify them about a change to their account, or request a payment, the agency often mails a letter or notice to the taxpayer.
If you get ANY type of letter from the IRS in the mail, we ask you to upload a photocopy of the notice to your client portal – even if you are able to address the issue on your own
The IRS Makes it easy to make Tax Payments online with their payment tool. This Blog walks you through the payment process.
