New limits on meal and entertainment deductions appear to increase the number of situations in which business meals are deductible, according to recent IRS Notice 2018-76.

In fact, many business meals that have not been deductible for years are now deductible, according to the notice.

Under the old rules, for a business meal to be deductible, there had to be an active business discussion directly or indirectly connected to the meal. In other words, the discussion had to take place during the meal or immediately before or after it—and if you didn’t want the deductions denied under audit, you had to document the business that was discussed.

But tax attorneys at a recent conference pointed out that the old requirements do not appear in the new rules spelled out in Notice 2018-76.

Bottom line: All that is required under the IRS Notice is that there be a current or potential business relationship. The business has to show only that there was some hope for a business relationship at the time, even if one never materialized.