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November 16, 2021

Temporary 100% deduction for restaurant-provided meals may apply to meal portion of taxpayer's per diem under new guidance

The IRS has published guidance (Notice 2021-63) under IRC Section 274(n)(2)(D) that will allow the meal portion of a taxpayer's per diem to be considered attributable to food or beverages provided by a restaurant. A temporary 100% deduction is available for expenses paid or incurred after December 31, 2020 and before January 1, 2023 for restaurant-provided food or beverages. A Tax Alert is forthcoming.