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.

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