To be deductible,meals and entertainment must be both an ordinary and necessary business expense and must be either directly related to or associated with the active conduct of an activity for which the taxpayer has a business purpose.

Question

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This is a correct statement regarding the IRS requirements for deducting meals and entertainment expenses. The expenses must meet both the "ordinary and necessary" test and be "directly related to" or "associated with" the active conduct of a business activity.

To Be Deductible,meals and Entertainment Must Be Both an Ordinary