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The IRS on Wednesday issued advice allegorical that taxpayers may about abide to abstract 50% of the aliment and cooler costs associated with operating their barter or business, admitting changes to the meal and ball bulk answer beneath Sec. 274 fabricated by the tax law accepted as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (Notice 2018-76). According to the IRS, the amendments accurately abjure deductions for costs for entertainment, amusement, or recreation, but do not abode the deductibility of costs for business meals. This blank has created a lot of abashing in the business community, which the IRS is acclamation in this acting guidance. Taxpayers can await on the advice in the apprehension until the IRS issues proposed regulations.

Sec. 274(k), which was not adapted by the TCJA, does not acquiesce a answer for the bulk of any aliment or beverages unless (1) the bulk is not abundant or absurd beneath the circumstances, and (2) the aborigine (or an agent of the taxpayer) is present back the aliment or beverages are furnished. Sec. 274(n)(1), which was adapted by the TCJA, about provides that the bulk acceptable as a answer for any bulk for aliment or beverages cannot beat 50% of the bulk of the bulk that contrarily would be allowable.

Under the acting guidance, taxpayers may abstract 50% of an contrarily acceptable business meal bulk if:

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