TREATMENT OF ROWAN DECISION UNDER RAILROAD RETIREMENT TAXES.

SEC. 10207. TREATMENT OF ROWAN DECISION UNDER RAILROAD RETIREMENT TAXES. (a) Exclusion of Meals and Lodging.—Subsection (e) of section 3231 of the Internal Revenue Code of 1986 is further amended by adding at the end the following new paragraph: “(10) Meals and lodging.—The term ‘compensation’ shall not include the value of meals or lodging furnished by or on behalf of the employer if at the time of such furnishing it is reasonable to believe that the employee will be able to exclude such items from income under section 119.”. (b) Income Tax Withholding Regulations Not To Apply.—Paragraph (1) of section 3231(e) of such Code is amended by adding at the end the following new sentence: “Nothing in the regulations prescribed for purposes of chapter 24 (relating to wage withholding) which provides an exclusion from ‘wages’ as used in such chapter shall be construed to require a similar exclusion from ‘compensation’ in regulations prescribed for purposes of this chapter.”. (c) Effective Date.—The amendments made by this section shall apply to remuneration paid after December 31, 1989.