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posted May 11, 2022 11:05:35 AM

Can self employed meals from any restaurant be deducted 100% this year? My review is stating Im high risk for audit if I place the cost in that 100% category

If this is in fact allowed for 2021, why is the tax return review warning me I am at risk for audit?

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1 Replies
Alumni
May 11, 2022 1:16:20 PM

See this notice

 

https://www.irs.gov/pub/irs-drop/n-21-25.pdf

https://www.irs.gov/pub/irs-drop/n-21-63.pdf

 

https://www.irs.gov/pub/irs-drop/rp-19-48.pdf

 

Not all meals are allowed to be deducted.  Either per diem rules must be met and/or the rules for business meeting/entertainment rules must be met, so the rules for Section 162 and 274 allowing the meals in the first place must be met. 

 

TT probably rates this as high risk, because this is a highly audited item by IRS.  Over the years a lot of adjustments have been made in audits in this area as many people tend to over deduct in this area.