Tax readiness: Meals, entertainment, and related fringe benefits after tax reform

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August 2019

Overview

The comprehensive federal tax reform legislation enacted in late 2017 (the Act) made a number of changes to the tax rules affecting the treatment of meals, entertainment, and related fringe benefits. On July 30 PwC hosted a webcast featuring specialists who discussed these issues. This Insight highlights those discussions.

The takeaway

There is still a fair amount of uncertainty about how business meals will be treated under the Act.  Until regulations are issued, taxpayers should continue to follow Notice 2018-76. Now may be a good time for taxpayers to review their general ledger accounting and try to align those accounts with the new rules.

Because of the new meal rules and the total disallowance of expenses for employer-provided eating facilities that goes into effect in 2026, employers may wish to review their policies on providing employee meals and/or eating facilities.

The new parking expense rules are confusing. Taxpayers should use their best efforts to determine reasonable methods, perhaps using statistical sampling, and document the method.

Contact us

Brian Daily

Partner, PwC US

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