Could that tax-exempt business meal really lead to an audit?
There’s no denying it: the Tax Code is complicated. Although various publications and sources may offer tax saving tips or strategies, understanding the legality of new proposals can be confusing. Since no one wants to pay more than what he or she owes, it can be a good idea to proactively consult with a tax attorney — even before problems with the Internal Revenue Service have arisen.
Such a consultation might be warranted even over seemingly small issues, like the business meal. Under current federal law, a meal provided for the employer’s convenience and on the employer’s premises might not need to be reported as employment income. That, in turn, means no payroll taxes on the value of that meal. In other circumstances, business meals might only be deductible by 50 percent.