We received many emails about our January article Tax Reform Wipes Out 50 Percent Business Entertainment Deductions.
One such email from a CPA member stated that she had attended four continuing education courses on tax reform and that in each of the courses, the instructors stated that business meals were still deductible. We listened and hoped she was correct, but sadly, she is not, as you will see in this article.
Before explaining why the meals are not deductible because of tax reform, here’s a ray of hope from the past for your consideration.
In the Tax Reform Act of 1984, the rhythmless authors of the tax code required that
you, a business taxpayer, keep a contemporaneous record of your business mileage and uses.
your tax preparer specifically advise you of the new business vehicle record-keeping requirements.
your tax preparer obtain from you written confirmation that you complied with the new requirements, and if you failed, your preparer could not sign your tax return.
the IRS assess a negligence penalty against you for your failure to comply.
Those in the tax and business communities were OUTRAGED at ... Log in to view full article.