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2 Copyright Â© 2014 Deloitte Development LLC. All rights reserved Agenda Tax Deductibility of Travel, Meals and Entertainment ExpensesDocumentation RequirementsPotential for Income Inclusion with Regard to EmployeesCurrent IRS Examination Trends Q&A.
The crew member, when preparing his/her return, must include in income the gross fishing proceeds (the gross fishing proceeds prior to reduction for items withheld, such as meals, fuel, and bait). From the gross fishing proceeds, the allowable away-from-tax-home meals are deductible. The vessel operator pays for the meals without any crew reimbursement. In this scenario, crew members would NOT be entitled to any meal deduction because their meals were provided by the vessel operator.