IRS Issues notice regarding deductibility of certain business expenses

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The IRS Issued Notice 2018-76, which provides transitional guidance on the deductibility of expenses for certain business meals under IRC § 274. Notably, the 2017 Tax Act eliminated the deduction for business-related entertainment expenses. Both Treasury and the IRS intend to publish proposed regulations under § 274, which will include guidance on the deductibility of expenses for certain business meals. Until the proposed regulations are effective, taxpayers may rely on the guidance provided in the notice for the treatment under § 274 of expenses for certain business meals.

The takeaway

Taxpayers should begin to evaluate the impact of the Notice on business meals provided during entertainment activities, including those expenses incurred after December 31, 2017.

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Ryan Ebner

Tax Partner, Private Company Services, PwC US

Karen LoDico

Tax Partner, PwC US

Gary M. Pogharian

Partner, PwC US

Carole Symonds

Partner, Law Firm Services Tax Leader, PwC US

Gregg Sincoff

Tax Managing Director, PwC US

Nancy Regan

Tax Director, PwC US

Ran Wei

Director, PwC US

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