IRS guidance clarifies meal portion of per diem allowance

November 19, 2021

The IRS has issued new guidance to clarify how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers applying the rules for using per diem rates.

Notice 2021-63 provides a special rule allowing the taxpayer to treat the full meal portion of the per diem rate or allowance as attributable to food or beverages from a restaurant beginning Jan. 1, 2021, through Dec. 31, 2022. 

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