The Treasury Department and the Internal Revenue Service issued Notice 2021-25 to provide guidance under the
Taxpayer Certainty and Disaster Relief Act of 2020.
Beginning January 1, 2021 – December 31, 2022, businesses can claim 100% of their food or beverage expense paid to
restaurants as long as the owner or employee of the business is present when the food or beverages are provided and the
expense is not lavish and extravagant.
Restaurants include, under this provision, a business that prepares food or sells food and beverages for consumption on
the premises or to go. This does not include prepackaged food sold at grocery stores or convenience stores.