Capitol Correspondence - 03.03.20

IRS Issues Updates on Taxpayer Advocate, Rules for Deducting Business Meals

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ANCOR is sharing these two updates from ASAE, the center for association leadership (of which we are a member), to keep our members informed of their responsibilities and rights as employers.

IRS Proposes Rules on Deducting Meals with Clients: “The IRS last Friday released proposed rules for businesses to follow when deducting business meals and entertainment expenses following the 2017 tax overhaul. Prior to changes in the tax law, the deduction was limited to 50% of the cost of meal and entertainment expenses. The 2017 Tax Cuts and Jobs Act repealed the deduction for entertainment expenses. […] The proposed rules state that the costs of business meals while entertaining clients are deductible as long as they are reflected on a separate receipt or invoice.

The proposed rules issued last week mostly conform to the temporary guidance the IRS put out in 2018. Public comments can be submitted online, and the IRS will hold a public hearing on the proposed rules on April 7, 2020.”

IRS Expects New Taxpayer Advocate in April: “The IRS expects to have a permanent leader for the Taxpayer Advocate Service in place by early April, according to Bloomberg Tax.

The Taxpayer Advocate Service is an independent office within the IRS that serves as the internal watchdog for the agency and makes recommendations to Congress about how the IRS could better serve taxpayers. The office was led by Nina Olson from 2001 until her retirement last year, but no permanent successor has been named by the Treasury Department.”