Although not as pertinent as JonNYC, I have some slightly unrelated experience....I learned my lesson. I would never sell/barter AA miles. I have much more to lose.
I certainly didn't mean to imply that my experience with this issue through direct contact with those who have been through it would be more valuable than first-hand experience like yours (albeit on a different carrier and a different era, etc.) Rather that it's worth much more than those who might actually know little or nothing on the subject but would post as if they do-- understandable confusing and maybe even misleading the OP's friend-- and those who may follow.
For a first offense, unitedPSbusiness' post might be closest to the reality of any post in this thread-- including mine. Read his post if ya' want the best picture of a likely first-offense penalty..
But again, the risk of getting caught is really quite high-- and if you're dealing with ads on eBay, Craigs and/or brokers-- you might as well just give your miles away to friends-- you will get bagged one day and lose 'em anyway.
The department that handles this at AAdvantage has been quite busy as of late-- at least that's the rumor..
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Quote:
Originally Posted by dayone
As I said, it happened a long time ago, before the advent of miles expiration.
When Delta, United, and US shortened their expiration period for miles, USA Today posted how other programs fared:
Quote:
Originally Posted by USA Today
Continental has a written policy stating that miles can expire if none are earned in 18 months, but the airline doesn't act on it, says spokesman David Messing.
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Quote:
Originally Posted by JonNYC
...For a first offense, unitedPSbusiness' post might be closest to the reality of any post in this thread-- including mine. Read his post if ya' want the best picture of a likely first-offense penalty...
Thanks Jon. Although all of these situations may be different, my comment was made on experience with AA. Thats what they did to me a while back . I was a first time offender
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Thanks Jon. Although all of these situations may be different, my comment was made on experience with AA. Thats what they did to me a while back . I was a first time offender
Yeah, that was evident from the accuracy of your post.
That said, every situation is handled on its own merits, so to speak. One could -easily- end up with a greater penalty for a first offense, especially if they start trying to get cute with the answers they give, obfuscation, lies, etc. The folks who handle this are not dumb and by the time they are asking you questions they probably know a lot of the answers anyway.
Given my opinions are nuanced with "AFAIK" "IMPersonalO" and "IMO" I can't see how you interpret my posts as dispensing "professional" anything, and I did not refer to CC in my posts here.
I have never used CC, precisely because even though it seems to be allowed by the airlines, etc. I am personally adverse to being involved. If you have questions relating to the mutual gifting of miles or points on Coupon Connection, you had better ask the folks over there, or perhaps even the owners of this website, as I am unable to provide an answer beyond a guess.
Quote:
Originally Posted by dayone
You have a very inconsistent and paradoxical "professional" opinion.
Selling miles is theft. Trading, i.e., bartering them (specifically prohibited in the AA T&Cs, to which you admonish us to adhere), with the encouragement and support of FT using the Coupon Connection platform, is ethical and encouraged.
What is the basis for this shade-of-gray nuance to a clearly black-and-white issue?
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I can't see how you interpret my posts as dispensing "professional" anything.
My mistake. Sorry.
Quote:
Originally Posted by JDiver
I have never used CC, precisely because even though it seems to be allowed by the airlines
"seems to be allowed," how?
Quote:
Originally Posted by JDiver
If you have questions relating to the mutual gifting of miles or points on Coupon Connection, you had better ask the ... the owners of this website, as I am unable to provide an answer beyond a guess.
"Mutual gifting"? That's an oxymoronic obfuscation of "bartering."
The (old) owners are notoriously silent whenever the questions get prickly. Beside, I would think you could get an answer from them much easer than I could. In the meantime, I would be very interested in your "guess" or "nuanced" opinion or whatever you would call it.
It is not necessarily the case that miles are not taxable. There's been a bit of a debate about it, and the only court I'm aware of that had a chance to address it head-on ducked the issue. It did conclude that if you charge your client for a first class ticket, then upgrade with miles, that is taxable.
Tax courts will rarely assess penalties against a taxpayer on issues of first impression (like frequent flyer miles), so I don't think we'll hear from the courts on this issue anytime soon. There are several law review notes (and at least one article, albeit dated) on point, for those who have access to Lexis or WestLaw:
ARTICLE: The Proposed Federal Taxation of Frequent Flyer Miles Received From Employers: Good Tax Policy But Bad Politics, 16 Akron Tax J. 1 (2001)
Tax Law Note: IRS Says No Tax Implications for Personal Use of Frequent Flyer Miles, 2002 Army Law. 51 (2002)
NOTE: Are Frequent Flyer Benefits Really Benefits?: An Analysis of the Frequent Flyer Tax Debate and a New Theory of Taxability for Frequent Flyer Benefits, 47 Clev. St. L. Rev. 281 (1999)
NOTES & COMMENTS: FREQUENT FLYER AWARDS AS TAXABLE INCOME: TIME TO PAY THE TAXMAN, 5 Tex. Wesleyan L. Rev. 55 (1998)
COMMENT: The Taxability of Frequent Flyer Credits Earned by Employees: Why the IRS Has Remained Silent on the Issue, 4 U. Pa. J. Lab. & Emp. L. 643 (2002)
Not identical situation but similar enough to recall: A friend of mine once purchased an award ticket on eBay. We don't know how they found out, but his ticket was cancelled midjourney and he had to buy a 1-way ticket home from Asia (ouch!). He didn't have any FF account himself, so they couldn't do anything more to him. I don't know what happened to the seller.
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Quote:
Originally Posted by aktchi
Not identical situation but similar enough to recall: A friend of mine once purchased an award ticket on eBay. We don't know how they found out, but his ticket was cancelled midjourney and he had to buy a 1-way ticket home from Asia (ouch!). He didn't have any FF account himself, so they couldn't do anything more to him. I don't know what happened to the seller.
WOW. That is what I call harsh...
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Read his post if ya' want the best picture of a likely first-offense penalty..
. I was a first time offender
