AICPA wants IRS guidance on meals and entertainment deduction

Register now

The American Institute of CPAs is asking the Internal Revenue Service and the Treasury Department for “immediate guidance” about the changes to the tax code under the Tax Cuts and Jobs Act related to the disallowance of entertainment, amusement, recreation and qualified transportation fringe expenses.

The new tax law disallowed many common business expenses, such as entertaining and transportation fringe expenses, providing some degree of angst in corporate America, amid fears that entertaining and wooing clients may become a thing of the past.

“Taxpayers require clarification in order to account for the changes in deductibility of these items and revise their accounting systems and expense and reimbursement policies and to comply with them on their 2018 tax returns and financial statements,” wrote AICPA Tax Executive Committee chair Annette Nellen.

The AICPA asked for guidance and made recommendations, with illustrative examples, about nine broad issues, including client-related business meals with current and prospective clients before, during or after an entertainment event; or at other times. The institute also requested guidance on employer-provided business meals related to restaurant and food service workers, along with the definition of a “facility.”

The AICPA also wants more details on the tax changes related to employer-provided snacks and other food, employer-hosted recreational and social activities, advertising, charitable contributions, qualified transportation, commuting and membership dues.

For reprint and licensing requests for this article, click here.
Trump tax plan Expense management Tax regulations Corporate taxes AICPA IRS Treasury Department