Per Diem Rates and the Meal Deduction

Notice 2021-63 clarifies how taxpayers can take advantage of the temporary 100 percent business deduction for food or beverages from restaurants using per diem rates. The notice provides a special rule that allows taxpayers to treat the full meal portion of a per diem rate or allowance as being attributable to food or beverages from a restaurant beginning January 1, 2021, through December 31, 2022.