Is There Change on the Horizon for Business Meal and Entertainment Tax Deductions?
July 29th, 2009
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The business meal and entertainment tax deduction may soon change from an appetizer to a main course. U.S. Representative Neil Abercrombie (HI) has reintroduced a bill to the 111th Congress that aims to increase the business meal and entertainment tax deduction from 50% to 80%. Cosponsored by three U.S. Representatives, House Bill 3333 has been floating throughout congress in some capacity for several years. Most recently, Representative Abercrombie’s 2007 version of the bill (H.R 2648) died in the 110th Congress after being referred to the House Committee on Ways and Means. The bill has also been presented to the Senate during previous sessions, always suffering the same fate.
We just got back in the office from a long week at the IRS Nationwide TaxForum, and we have a lot to share about 2009 tax code changes. In light of the current economic crisis our country is facing, the IRS has announced changes to the ’09 tax code that may provide some relief to taxpayers who have recently become unemployed. While the level of benefit for these changes may be marginal for some, it is important to gain awareness of the changes sooner rather than later.