Senators say IRS won’t appeal meal tax decision

Wednesday, July 21, 1999 | 5:03 a.m.

"This decision is a total victory for casino employees," Bryan, D-Nev., said. "They are the real winners."

The U.S. Ninth Circuit Court of Appeals ruled in May that casinos that feed employees because they are required to remain on the premises for their entire shift can deduct the full value of the meals rather than the 80 percent permitted by law for business meals and entertainment.

The case was brought to the federal court by the Boyd Gaming Corp. after it failed to convince the U.S. Tax Court.

Bryan and Reid, D-Nev., said Wednesday that IRS Commissioner Charles Rossotti told them the IRS would not appeal the court's decision.

"For more than a year, we have fought to prevent these meals from being unfairly taxed and today's announcement is a win for the hardworking men and women of the gaming industry," Reid said.

Congressman Jim Gibbons, R-Nev., said the decision not to appeal was made "because they know there is no legal basis to tax employee meals."

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