Scrooge does not exist when it comes to Holiday Parties!!!!
When it comes to holiday parties the IRS is no scrooge! In fact, the IRS says Employee holiday parties are 100% tax deductible (including beverages and decorations). However, the IRS does have a few caveats. The expenses cannot be extravagant or lavish (e.g. caviar, lobster, expensive wine or cigars, etc.), and the parties must be infrequent.
If you choose to host a party for your customers or clients, you may deduct 50 percent of the cost. The expense must not be extravagant, and business must be discussed or conducted either during or adjacent to the event (e.g. going to lunch after a meeting).
WomenEntrepreneur has a fun article that discusses deductions for holiday parties and gift giving. Please feel free to contact me at the Las Vegas CPA firm of Wallace Neumann & Verville LLP if you have any questions. Have a wonderful Holiday Season!!!