alliantgroup’s Kathy Petronchak Featured in Tax Notes on Deduction for Client Business Meals

alliantgroup’s Director of IRS Practice & Procedure and former IRS Commissioner of the Small Business/Self-Employed (SB/SE) Division Kathy Petronchak was featured recently in Tax Notes in an article on the controversy surrounding the deduction for client business meals.

In Stephanie Cumings’ piece “Unclear if the IRS Can Save the Client Business Meal” Petronchak comments on the client business meal deduction that seems to have unintentionally been left out of the 2017 tax reform bill signed into law late last year. In the article, Cumings weighs the opinion of multiple tax experts on if the IRS has the power to restore the deduction by issuing regulations that clarify if such meals are considered “entertainment” within the IRS’s regulatory guidelines. Petronchak states that this distinction could be interpreted by the Service in different ways — but whatever the IRS decides, it must issue guidance offering some clarity on the deduction.

Kathy Petronchak of alliantgroup LP, who chaired the AICPA’s meals and entertainment task force, said the foggy relationship between meals and entertainment in the regulations partially prompted the letter. She added that it’s possible the IRS will draw the line at meals served in entertainment venues — like luxury boxes at sporting events — while client business meals that are separate from any form of entertainment will remain deductible. But either way, Petronchak said the most important thing is that the rules be clear.

Click here to read the full article and here for more information on Kathy Petronchak and alliantNational, alliantgroup’s Washington national office.

About the Author

alliantgroup’s mission is one of education and awareness—we exist to help industry organizations, businesses and the accounting firms that advise them take full advantage of all federal and state tax credits, incentives and deductions available. These powerful incentive programs are legislated by the government to help businesses grow and remain competitive locally as well as abroad. We are proud to have helped over 16,000 businesses claim more than $8 billion in tax incentives. alliantgroup’s international headquarters is in Houston, Texas, with offices across the country and internationally including New York, Boston, Chicago, Orange County, Sacramento, Indianapolis, Washington, D.C and London and Bristol in the U.K.