On Wednesday, Sept. 30, the IRS issued final regulations (T.D. 9925) implementing provisions of the Tax Cuts and Jobs Act (TCJA) that disallow a business deduction for most entertainment expenses.
The regulations also clarify the treatment of business deductions for food and beverages that remain deductible and provide guidance on how taxpayers may distinguish those expenditures from entertainment.
The final regulations added several new examples to the proposed regulations and slightly modified others in response to comments asking for clarification. They become effective upon their publication in the Federal Register. Taxpayers may also rely upon the proposed regulations for expenses paid or incurred after Dec. 31, 2017. Get the details here.