Tax Court Overrules IRS: NHL Team’s Meals Were Deductible

According to the United States Tax Court, the National Hockey League’s Boston Bruins pregame meals can be fully expensed. The IRS had issued a notice of delinquency to the team for deducting the meals in full, saying they were subject to the 50% limitation under IRC Sec. 274(n)(1). The Tax Court disagreed, saying the team’s meals, which were provided by a hotel the team contracted, involved game film review, discussion of strategy and other business-related elements. This rendered the costs of the meals as de minimis fringe benefits under IRC Sec. 274(n)(2)(B) for meeting the exception of IRC Sec. 132(e), the Tax Court said.

Read the full decision here: http://ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11300

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