Does claiming the self-employed 100% meal deduction for 2022 put me at higher risk of audit? I usually deduct 50% of consultation and networking meals (=low audit risk)

I notice if I claim 100% of meals (as is allowed for tax years 2021-2022), then my audit risk jumps to medium, and if I keep it at 50%, it stays at low risk. These are consultation and networking meals at restaurants, so want to be sure I am claiming this correctly and not putting myself at risk. Any reason why taking this 100% deduction would increase my audit risk? Thank you!!

181

Expert Alumni

Mar 24, 2023 3:44:00 PM

This should not increase your audit risk since the allowed amount of 100% is available to use for 2022. Just make sure that you have your expenses well documented with meal receipts, business dining companions, and what was discussed. This is an allowable expense and should not cause a red flag with the IRS.

Please see this link from the IRS about the enhanced business meal deduction.

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Does claiming the self-employed 100% meal deduction for 2022 put me at higher risk of audit? I usually deduct 50% of consultation and networking meals (=low audit risk)