[Federal Register Volume 85, Number 244 (Friday, December 18, 2020)]
[Rules and Regulations]
[Page 82355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26860]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9925]
RIN 1545-BP23


Meals and Entertainment Expenses Under Section 274; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; correction.

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SUMMARY: This document contains corrections to the final regulations 
(Treasury Decision 9925) that published in the Federal Register on 
October 9, 2020. The final regulations provide guidance under section 
274 of the Internal Revenue Code (Code) regarding certain recent 
amendments made to that section. Specifically, the final regulations 
address the elimination of the deduction under section 274 for 
expenditures related to entertainment, amusement, or recreation 
activities, and provide guidance to determine whether an activity is of 
a type generally considered to be entertainment.

DATES: These corrections are effective on December 18, 2020 and 
applicable for taxable years that begin on or after October 9, 2020.

FOR FURTHER INFORMATION CONTACT: Patrick Clinton of the Office of the 
Associate Chief Counsel (Income Tax and Accounting), (202) 317-7005 
(not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9925) that are the subject of this 
correction are issued under section 274 of the Internal Revenue Code.

Need for Correction

    As published the final regulations (TD 9925) contain errors that 
need to be corrected.

Correction of Publication

    Accordingly, the final regulations (TD 9925), that are the subject 
of FR Doc. 2020-21990, published on October 9, 2020 (85 FR 64026), are 
corrected as follows:
    1. On page 64031, third column, the second line, the language ``in 
Sutherland Lumber'' is corrected to read ``in Sutherland Lumber-
Southwest''.
    2. On page 64031, third column, the ninth line of the second full 
paragraph, the language ``Sec.  1.274-10(a)(2)(ii)(C)(2)'' is corrected 
to read ``Sec.  1.274-10(a)(2)(ii)(C)(2)''.
    3. On page 64032, second column, the second line, the language ``or 
gross income is zero, whether zero is'' is corrected to read ``or gross 
income is zero (other than due to a reimbursement by the recipient), 
whether zero is''.
    4. On page 64032, second column, the thirteenth line from the top 
of the page, the language ``(e)(9) do not apply.'' is corrected to read 
``(e)(9) generally do not apply.''.
    5. On page 64032, second column, the thirteenth line from the top 
of the page, the language ``Similarly, the exceptions in section 
274(e)(2) and (e)(9) do not apply if'' is corrected to read ``However, 
the exceptions in section 274(e)(2) and (e)(9) will apply if the 
recipient reimburses the taxpayer for a portion of the value of the 
food or beverages even if the value exceeding the reimbursed amount is 
properly excluded from the recipient's compensation and wages or gross 
income. In this case, however, the taxpayer must apply the dollar-for-
dollar rule as described in Sec.  1.274-12(c)(2)(i)(D). In cases in 
which''.
    6. On page 64032, second column, the second and last sentence from 
the bottom of the first partial paragraph, remove the language ``. In 
that case, however,''.
    7. On page 64032, third column, the third line of the second full 
paragraph, the language ``regulations confirm'' is corrected to read 
``regulations confirmed''.
    8. On page 64032, third column, the twelfth line of the second full 
paragraph, the language ``demonstrates'' is corrected to read 
``demonstrated''.

Crystal Pemberton,
Senior Federal Register Liaison, Publications and Regulations Branch, 
Legal Processing Division, Associate Chief Counsel, (Procedure and 
Administration).
[FR Doc. 2020-26860 Filed 12-17-20; 8:45 am]
BILLING CODE 4830-01-P