close
Share with your friends

Final regulations: Deductibility of meal and entertainment expenses (text of regulations)

Deductibility of meal and entertainment expenses

The IRS today posted on its website a version of final regulations (T.D. 9925) as guidance under section 274 and regarding changes made to section 274 by the U.S. tax law enacted in 2017.

1000

Related content

The preamble to this version of the final regulations [PDF 384 KB] (56 pages) states that regulations proposed in February 2020 are adopted with modifications in response to certain comments made with regard to the proposed regulations.

The version of the final regulations released by the IRS today includes the following statement:

This document will be submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final regulations released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

The purpose of this report is to provide text of these final regulations as released by the IRS.

Background

The 2017 tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA)—eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. It also increased the scope of the deduction limitation for expenses related to food and beverages provided by employers.

The February 2020 proposed regulations:

  • Addressed the elimination of the deduction for expenditures related to entertainment, amusement or recreation activities
  • Provided guidance to determine whether an activity is considered to be entertainment
  • Addressed the limitation on the deduction of food and beverage expenses and the applicability of exceptions under section 274(e)

Read TaxNewsFlash

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal