News Notes: Court OKs Tax Deduction For Employer-Provided Meals

Employers who provide on-site meals to certain workers have been given a break by the federal Ninth Circuit Court of Appeal. Boyd Gaming Corp., which owns casinos in Nevada, offered workers free meals in an on-site cafeteria because it required them for security reasons to remain on the premises for their entire shift. But when the company tried to take a tax deduction for the full cost of the meals, the IRS said it only qualified for a lesser business meals and entertainment deduction. The court disagreed, ruling the expenses were fully deductible (and excludable from employees’ gross income) because the meals were provided under a legitimate policy requiring workers to remain on-site and were furnished for the employer’s convenience alone.