Tax Law and News Guidance issued on tax relief on deductions for food or beverages from restaurants Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Intuit Accountants Team Published Apr 19, 2021 1 min read The U.S. Treasury Department and the IRS have issued Notice 2021-25, providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020. The Act added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception allows a 100% deduction for food or beverages from restaurants. Beginning Jan. 1, 2021, through Dec. 31, 2022, businesses can claim 100% of their food or beverage expenses paid to restaurants as long as the business owner (or an employee of the business) is present when food or beverages are provided, and the expense is not lavish or extravagant under the circumstances. Where can businesses get food and beverages, and claim 100%? Under the temporary provision, restaurants include businesses that prepare and sell food or beverages to retail customers for immediate on-premises and/or off-premises consumption. However, restaurants do not include businesses that primarily sell pre-packaged goods not for immediate consumption, such as grocery stores and convenience stores. In addition, an employer may not treat certain employer-operated eating facilities as restaurants, even if these facilities are operated by a third party under contract with the employer. More information for business seeking coronavirus related tax relief can be found at IRS.gov. Previous Post American Rescue Plan: Essential insights for businesses Next Post American Rescue Plan: Essential insights for individuals and families Written by Intuit Accountants Team The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us at https://proconnect.intuit.com, or follow us on Twitter @IntuitAccts. More from Intuit Accountants Team Comments are closed. Browse Related Articles Tax Law and News IRS Issues Guidance on TCJA Changes to Business Expense… Tax Law and News Tax Reform Makes Changes to the Meals and Entertainment… Tax Law and News IRS Updates Per-Diem Guidance for Business Travelers an… Tax Law and News Guide for Reporting Tip Income by Employers and Employe… Tax Law and News Guidance Issued on Deductions for Cooperatives and Thei… Tax Law and News IRS Issues Tips on How Tax Reform Affects Farmers and R… Tax Law and News Business Meals Deduction for 2020: 100% Fully Deductib… Tax Law and News Government Shutdown Averted and Tax Provisions Providin… Tax Law and News IRS provides guidance for employers claiming the Employ… Tax Law and News Guidance issued on employer deferral of withholding and…