Advance Child Tax Credit 2021

 The IRS will send out letters showing the details of the Tax Credit eligible individuals received in 2021.

IRS to accept 2021 tax returns

 Irs to accept 2021 tax returns starting on 1/24/2022

100% Meal Deduction for 2021-2022

 

New Meal Deduction Rules

As a refresher, starting on January 1, 2021, through December 31, 2022, a business may claim 100% of food or beverage expenses paid to restaurants assuming the business owner (or employee) is present when provided and the expense is not lavish or extravagant under the circumstances. For all other entertainment and business meal expenses, the 50% meal deduction would still apply.

IRS Guidance Highlights

The guidance provides additional information on when the higher deduction amount can be claimed.

• Restaurant Definition – The guidance clarifies the term “restaurant” to mean any business that prepares and sells food or beverages for immediate consumption, regardless of whether those items are consumed on-site. Therefore, any qualifying purchases made at such establishments qualify for the 100% deduction. However, purchases made at any business which sells pre-packaged food or beverages such as grocery stores, specialty food stores, beer, wine or liquor stores, convenience stores, or vending machines do not qualify.
• On-Site Eating Facilities – The guidance also clarifies any eating facility located on the business premises for the purpose of furnishing employee meals (excluded from employee gross income), or an employer operated eating facility, even if operated by a third party under contract with the employer, is NOT a qualifying restaurant for purposes of the expanded meal deduction.