Employer provided meals 100% deductible?

[t_minger64]

What is the name of your state? FL
My employer was buying everyone (three employees) lunch every day. Our business stays open during the day, we eat on site and regularly conduct business between bites. His accountant has since told him that these expenses are not tax deductible. I've been to the IRS website and even called the IRS on this matter. I know that there is a 50% deduction, but there was also a 100% deduction discussed, but I'm not sure what the qualifications for the 100% deduction are. Are meal deductions a 'red flag' for auditors? He currently has one legitimate employee (me) paid on a W2. He also has two guys that he pays on a 1099misc. (also on the advise of his accountant) that I know do not pass the 'twenty question' test on determining 'employee status'. He files taxes on a schedule C as the company is a sole proprietership. I was rather enjoying the 'free lunch' and am a little put out that the accountant has suddenly decided that its in the best interest of my employer to discontinue this practice. Thanks for your insight.What is the name of your state?

 

[divgradcurl]

What is the name of your state? FL
My employer was buying everyone (three employees) lunch every day. Our business stays open during the day, we eat on site and regularly conduct business between bites. His accountant has since told him that these expenses are not tax deductible. I've been to the IRS website and even called the IRS on this matter. I know that there is a 50% deduction, but there was also a 100% deduction discussed, but I'm not sure what the qualifications for the 100% deduction are. Are meal deductions a 'red flag' for auditors? He currently has one legitimate employee (me) paid on a W2. He also has two guys that he pays on a 1099misc. (also on the advise of his accountant) that I know do not pass the 'twenty question' test on determining 'employee status'. He files taxes on a schedule C as the company is a sole proprietership. I was rather enjoying the 'free lunch' and am a little put out that the accountant has suddenly decided that its in the best interest of my employer to discontinue this practice. Thanks for your insight.What is the name of your state?

Repost on the tax forum. Generally, however, for a lunch (or other employee perk) to be deductible to the employer, it needs to be taxable to the employee. But check with the experts on the Tax Forum for the an accurate answer to your specific situation.