Yes you can file with a book - tax difference. When you have non-deductible expenses like 50% of meals it creates a permanent book- tax difference. If your business is filing as an S-Corp, the difference is shown on Schedule M-3 - Reconciliation of Income (Loss) per Books With Income (Loss) per Return. If your business is filing a Form 1065, that is Schedule M-1. The difference will carry forward and be your starting point for next year's reconciliation.
