Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 2

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          motion for reconsideration of the Court’s Opinion in this case              
          (petitioner’s motion for reconsideration) set forth in 123 T.C.             
          154 (2004) (Transport Labor I) and petitioner’s motion to vacate            
          or revise the Court’s decision in this case (petitioner’s motion            
          to vacate).  The Court held in Transport Labor I that the limita-           
          tion imposed by section 274(n)(1)1 (section 274(n)(1) limitation)           
          applied to the amounts (per diem amounts) that petitioner’s                 
          wholly owned subsidiary Transport Leasing/Contract, Inc. (TLC),             
          paid during each of the taxable years at issue to certain truck             
          drivers in order to cover the amounts that they spent for food              
          and beverages.2                                                             
                                     Background                                       
               We incorporate herein by reference the findings of fact set            
          forth in Transport Labor I.  We repeat here the facts helpful in            
          understanding the discussion that follows.                                  
               TLC was a driver-leasing company that leased one or more               
          truck drivers to small and mid-sized independent trucking compa-            
          nies which used such truck drivers to transport goods and mer-              



               1All section references are to the Internal Revenue Code in            
          effect for the taxable years at issue.  All Rule references are             
          to the Tax Court Rules of Practice and Procedure.                           
               2We shall refer to such expenses as food and beverage ex-              
          penses.  See Transp. Labor Contract/Leasing, Inc. & Subs. v.                
          Commissioner, 123 T.C. 154, 155 n.4 (2004).                                 






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