By NTA
•
November 17, 2021
New guidance from the IRS makes clear that motor carriers with drivers subject to hours of service requirements can temporarily deduct the meal portion of per diem expense reimbursements at 100% instead of 80%. In order to provide relief for restaurants hard hit by the COVID-19 pandemic, the IRS issued guidance in April of 2021, temporarily raising the business expense deduction for restaurant meals for most employers from 50% to 100%. The question at that time was whether the 100% deduction would apply to the meal portion of meal and incidental expense (M&IE) per diem reimbursements provided by motor carriers to eligible drivers, raising the deduction to 100% from the 80% deduction motor carriers are typically allowed. Yesterday, the IRS answered that question in Notice 2021-63, “Temporary 100-Percent Deduction Applies to Meal Portion of 2021 and 2022 Per Diem Rate or Allowance.”