2 of 4

Initial Implementation

MEAL EXPENSES

ACTION ITEM	ASSIGNED TO	COMPLETED	RESOURCES / NOTES
Review current IRS rules on business meal deductibility �(50% deduction for most business meals)		__ / __ / __	IRS Pub. 463; meals must be with a business associate and have a clear business purpose
Establish a written meal expense policy for your business �(who qualifies, dollar limits, documentation)		__ / __ / __	Policy template; include per-person limits, pre-approval rules, and substantiation requirements
Set up an accountable plan if operating through an entity (S-Corp, LLC) for meal reimbursements		__ / __ / __	Accountable plan template; substantiation + return of excess within 60/120 days
Choose and implement a receipt tracking system for meal expenses		__ / __ / __	Expensify, Dext, QuickBooks receipts, or envelope/folder system; capture receipts same day
Create a meal expense log template with all IRS-required fields		__ / __ / __	Template fields: date, restaurant, amount, attendees (names + business relationship), business purpose discussed
Obtain a dedicated business credit/debit card for meal expenses (separates from personal)		__ / __ / __	Simplified bookkeeping; provides backup documentation if receipt is lost; bank statement alone is NOT sufficient
Train yourself/team on what qualifies as a deductible business meal vs. entertainment		__ / __ / __	Meals = 50% deductible; entertainment = NOT deductible (post-TCJA); meals at entertainment events: must be separate

3 of 4

Ongoing Support

MEAL EXPENSES

ACTION ITEM	ASSIGNED TO	COMPLETED	RESOURCES / NOTES
Collect itemized receipts for every business meal �(not just credit card slips)		__ / __ / __	Must show restaurant name, date, items ordered, total; tip can be included in deductible amount
Document the 5 required elements on each receipt: date, place, amount, business relationship, business purpose		__ / __ / __	Write on receipt or log immediately: "Lunch w/ [Name], [Company] — discussed [project/deal]"
Distinguish between 50% deductible meals and 100% deductible meals (e.g., company-wide events)		__ / __ / __	50%: client meals, prospect meals; 100%: company holiday parties, team picnics open to all employees
Record meal expenses in accounting software with proper categorization		__ / __ / __	Separate categories: "Meals — 50%" and "Meals — 100%"; bookkeeper/CPA should verify classification
If using an accountable plan, submit meal expense reports with receipts within 60 days		__ / __ / __	Attach itemized receipts + business purpose notes; return excess reimbursement within 120 days
Reconcile business card meal charges monthly against documented receipts and logs		__ / __ / __	Flag any meals missing documentation; add notes before memory fades; card statement alone is not enough
Annual review with CPA to verify meal deduction categories, documentation, and compliance		__ / __ / __	Schedule before year-end; review 50% vs. 100% classifications; ensure all receipts are on file

Important Reminders

MEAL EXPENSES

Business meals are generally 50% deductible. The meal must involve a business associate and have a clear �business purpose.
You must document 5 elements for every meal: date, place/restaurant, amount, business relationship of attendee(s), and business purpose discussed.
Entertainment expenses (sporting events, concerts, golf) are NOT deductible post-TCJA. If food is provided at an entertainment event, it must be purchased separately or invoiced separately to be deductible.
Company-wide events (holiday parties, summer picnics) open to all employees are 100% deductible — not subject �to the 50% limit.
Tips are included in the deductible meal amount. Alcohol is deductible as part of a business meal (subject to the 50% limit).
A credit card statement alone is NOT sufficient documentation. You must have an itemized receipt showing �what was purchased.

This checklist is for informational purposes. Always consult your CPA or tax attorney for personalized advice.