TAX FILE

The tax treatment of meals and lodging remains an issue, even though Congress made no change in the deductibility of drivers' meals as part of the tax bill that President Bush signed in early June. Congress may put together a set of tax breaks for small business if it takes up an increase in the minimum wage this fall. The breaks could include an acceleration of deduction for drivers' meals, which under current law is scheduled to rise from 60% of cost in 2001 to 65% in 2002, and eventually to 80% in 2008. Meanwhile, Trucks Inc. and United Airlines have cases pending in a total of three federal courts regarding different payment plans for employee travel.