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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.


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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.


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)

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