Boyd Gaming Corporation, F.K.A. The Boyd Group and Subsidiaries - Page 76

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          furnished for a compensatory reason are not excludable from                 
          income under section 119.                                                   
               8.  Attract Prospective Employees                                      
               An employer furnishes a meal to an employee for a                      
          compensatory business reason if the employer furnishes the meal             
          intending to attract prospective employees.  Sec.                           
          1.119-1(a)(2)(iii), Income Tax Regs.                                        
               Petitioners furnish the meals to their employees to attract            
          new employees.  Accordingly, petitioners have a compensatory                
          business reason in furnishing the meals and, absent a substantial           
          noncompensatory business reason, the meals are not excludable               
          from income under section 119.                                              
               9.  Compensation Under Contract or Statute                             
               The labor agreements at hand do not explicitly characterize            
          the meals as employee compensation.  Our characterization of the            
          meals as compensation, however, is not bound to the language that           
          the parties to an agreement utilize therein.  We look to the                
          facts and circumstances of this case to determine whether the               
          actions of the parties to the agreements indicate that the                  
          parties intended that the meals be compensation.  We answer this            
          question in the affirmative.                                                
               We read the record to indicate that one of petitioners'                
          reasons for providing meals to their employees is to fulfill the            
          unions' demand that petitioners provide union employees with                
          meals during their working hours for the primary benefit of the             




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