SECTION 5. APPLICATION

.01 In General. Family day care providers may compute the deductible cost of each meal and snack actually purchased and served to an eligible child during the time period when family day care is provided by using the standard meal and snack rates provided in section 5.04 of this revenue procedure. A family day care provider may use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. The rates apply regardless of whether a family day care provider is reimbursed for food costs, in whole or in part, under the CACFP, or under any other program, for a particular meal or snack. A family day care provider who receives a reimbursement for a particular meal or snack, however, may deduct only the portion of the applicable standard meal or snack rate that exceeds the amount of the reimbursement.

.02 Rates Must Be Used Consistently. Family day care providers may use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the

The principal authors of this notice are Christopher J. Wilson, Office of the Associate Chief Counsel (Passthroughs and Special Industries) and Timothy L. Jones, Office of the Division Counsel/Associate Chief Counsel (Tax-Exempt and Government Entities). For further information regarding this notice, contact Mr. Wilson at (808) 539– 2874 or Susan Reaman at (202) 622–3040 (not toll-free calls).

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determina- tion of correct tax liability. (Also Part I, §§ 162, 6001, 1.6001–1.)

Rev. Proc. 2003–22