UA closed my account.
Aug 20, 2012, 7:26 pm
#76
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,685
Analogies don't work in tax law and this issue has been dealt with by IRS and Congress. There is an uneasy standoff.
The answer is that to the extent that the travel which earned the miles was paid for by a third party, generally an employer, the fair market value of the award is taxble income. The uneasy truce is that so long as the "miles" have $0 value, and the t&c make the explicitly clear, there is no effective way to value the miles for income purposes.
The poster is correct that the miles have $0 value to a FF member, but are carried on the books of the carrier at a rough value calculated on the average way in which they are used.
The answer is that to the extent that the travel which earned the miles was paid for by a third party, generally an employer, the fair market value of the award is taxble income. The uneasy truce is that so long as the "miles" have $0 value, and the t&c make the explicitly clear, there is no effective way to value the miles for income purposes.
The poster is correct that the miles have $0 value to a FF member, but are carried on the books of the carrier at a rough value calculated on the average way in which they are used.
Aug 20, 2012, 8:07 pm
#77
Join Date: Mar 2009
Location: Kingdom of Saudi Arabia
Programs: UA-1k, 1mm, Marriott-LT Platinum, Hertz-Presidents Circle
Posts: 6,355
So once an account is investigated it can turn out positive I guess the moral of the story is.
Aug 20, 2012, 9:20 pm
#78
Join Date: Jul 2012
Programs: UA MP, DL Sky Miles
Posts: 153
Without getting into the specifics. I had my UA account frozen and investigated 2 years ago. I did a trade on CC with a veteran FTer who traded me some fraudulant UA ecerts or flight credits (never found out which) to book my dad and brother a domestic flight. Long story short we tried to check in with bags and it was like a sting with the agent saying to my dad and brother talk to this person on the phone. They didn't know what was going on as they said I arranged the flights for them. Because I got on the phone to try and figure it out they froze my account along with theirs just because I said I arranged it with a friend. I wasn't even traveling on his certs/credits. I had to buy full fare Y tickets for both of them to travel right then, or they weren't going.
I have over 500k miles, numerous upgrade certs and ecerts frozen for almost 3 months. I called numerous times and they could only tell me I was being investigaged and they said I will be contacted when they were complete with their investigation. I was emailed 3 months later and my account reinstated.
I reported this to the mod's of CC and they banned him for 3 months or more I believe. The trade partner is still on FT and still posting. He still has 800 in compensation he owes to me outstanding. This thread just brought back bad memories.
I have over 500k miles, numerous upgrade certs and ecerts frozen for almost 3 months. I called numerous times and they could only tell me I was being investigaged and they said I will be contacted when they were complete with their investigation. I was emailed 3 months later and my account reinstated.
I reported this to the mod's of CC and they banned him for 3 months or more I believe. The trade partner is still on FT and still posting. He still has 800 in compensation he owes to me outstanding. This thread just brought back bad memories.
Aug 21, 2012, 12:43 am
#79
FlyerTalk Evangelist
Join Date: Mar 2008
Location: body: A stone's throw from SFO, mind: SE Asia
Programs: Some of this 'n some of that
Posts: 17,263
On the topic of the "limiting upgrades to 5 people" thing, that seems like a good way to start. As long as there's a way to say, change out 1 or 2 people per year for your "fav 5", and if you have to sponsor/gift awards to someone outside the "fav 5", just call the CS lines and explicitly explain who these one time exceptions are. Then all other times when you sponsor/gift awards or upgrades to the fav 5, the airline knows that you're okay and leave you alone, then that seems to be an acceptable way to handle it.
Last edited by iluv2fly; Aug 21, 2012 at 1:42 pm Reason: response to deleted post
Aug 21, 2012, 5:47 am
#80
Join Date: Oct 2009
Programs: UA 1K
Posts: 311
Happens all the time. My company sets up a unique FF account for each person. When I have enough miles in my account for a ticket, they'll use it for whomever they like in the company. I think it violates the terms but who knows, and clearly UA knows it is going on and doesn't want to jeopardize the account.
double standard, or course....but what you going to do.. other than to choose another airline!
double standard, or course....but what you going to do.. other than to choose another airline!
If internal politics are too hot, you could always report to United that the company is using it to give out bonuses and rewards. Good luck.
Aug 21, 2012, 1:33 pm
#81
Join Date: Aug 2008
Location: DEN
Programs: Recovering after 7 years of UA 1K, Still UA Silver (Which means nothing), Marriott Lifetime Plat Pre
Posts: 1,950
Without getting into the specifics. I had my UA account frozen and investigated 2 years ago. I did a trade on CC with a veteran FTer who traded me some fraudulant UA ecerts or flight credits (never found out which) to book my dad and brother a domestic flight. Long story short we tried to check in with bags and it was like a sting with the agent saying to my dad and brother talk to this person on the phone. They didn't know what was going on as they said I arranged the flights for them. Because I got on the phone to try and figure it out they froze my account along with theirs just because I said I arranged it with a friend. I wasn't even traveling on his certs/credits. I had to buy full fare Y tickets for both of them to travel right then, or they weren't going.
I have over 500k miles, numerous upgrade certs and ecerts frozen for almost 3 months. I called numerous times and they could only tell me I was being investigaged and they said I will be contacted when they were complete with their investigation. I was emailed 3 months later and my account reinstated.
I reported this to the mod's of CC and they banned him for 3 months or more I believe. The trade partner is still on FT and still posting. He still has 800 in compensation he owes to me outstanding. This thread just brought back bad memories.
I have over 500k miles, numerous upgrade certs and ecerts frozen for almost 3 months. I called numerous times and they could only tell me I was being investigaged and they said I will be contacted when they were complete with their investigation. I was emailed 3 months later and my account reinstated.
I reported this to the mod's of CC and they banned him for 3 months or more I believe. The trade partner is still on FT and still posting. He still has 800 in compensation he owes to me outstanding. This thread just brought back bad memories.
Last edited by iluv2fly; Aug 21, 2012 at 1:42 pm Reason: off-topic
Aug 21, 2012, 2:05 pm
#82
Original Member
Join Date: May 1998
Location: CT/NY
Programs: UA 1K/1MM, AA EXP, Marriott LT Titanium, Hyatt Globalist, IHG Plat Amb
Posts: 6,012
Aug 21, 2012, 2:19 pm
#83
Join Date: Feb 2007
Location: Between ORD and MKE
Programs: AA ExecPlat; UA 1K
Posts: 147
The "prove your innocence" thing in dan1431's case would've left a bad taste for me if it happened to me. I am however quite willing to cooperate with the airlines if they have a legitimate concern to enforce the T&C line items.
On the topic of the "limiting upgrades to 5 people" thing, that seems like a good way to start. As long as there's a way to say, change out 1 or 2 people per year for your "fav 5", and if you have to sponsor/gift awards to someone outside the "fav 5", just call the CS lines and explicitly explain who these one time exceptions are. Then all other times when you sponsor/gift awards or upgrades to the fav 5, the airline knows that you're okay and leave you alone, then that seems to be an acceptable way to handle it.
On the topic of the "limiting upgrades to 5 people" thing, that seems like a good way to start. As long as there's a way to say, change out 1 or 2 people per year for your "fav 5", and if you have to sponsor/gift awards to someone outside the "fav 5", just call the CS lines and explicitly explain who these one time exceptions are. Then all other times when you sponsor/gift awards or upgrades to the fav 5, the airline knows that you're okay and leave you alone, then that seems to be an acceptable way to handle it.
Aug 21, 2012, 3:58 pm
#84
Join Date: Aug 2001
Location: BNE/OOL temporarily-permanently at CAK/PIT
Programs: UA*1K & UA Club, National Ex. Elite, Hertz Pres. Circ., Amex Plat., CLEAR
Posts: 1,703
I would suspect such accounts receive far more audit activity than those of us who earn our miles by actually flying.
Aug 21, 2012, 4:40 pm
#85
Join Date: Jan 2008
Location: EAU
Programs: UA 1K, CO Plat, NW Plat, Marriott Premiere Plat, SPG Plat, Priority Gold, Hilton Gold
Posts: 4,712
A perusal of various forums around the Internet, including ones here on FT, reveals many people with hundreds of thousands or millions of miles accrued solely through credit card offers.
I would suspect such accounts receive far more audit activity than those of us who earn our miles by actually flying.
I would suspect such accounts receive far more audit activity than those of us who earn our miles by actually flying.
I get most of my miles that way, all it takes is having business spend and deciding to put it on an airline rewards card. I regret doing it on DL but it's worked out well on CO/UA.
Airlines seem pretty happy to sell those miles to CC companies, and they actually get hard cash for them.
Aug 21, 2012, 6:51 pm
#86
Join Date: Oct 2009
Programs: UA 1K, Hilton ♦ , Hyatt Carbonado, Wyndham ♦, Marriott PE, "Stinking Bum" elsewhere.
Posts: 4,990
Those two dudes found a fabulous (albeit illicit) way to make money with their passes. I'll bet the IRS will want to talk to them about the undeclared income as well.
Aug 21, 2012, 9:24 pm
#87
Join Date: Jul 2012
Programs: UA MP, DL Sky Miles
Posts: 153
Aug 21, 2012, 9:37 pm
#88
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,740
A perusal of various forums around the Internet, including ones here on FT, reveals many people with hundreds of thousands or millions of miles accrued solely through credit card offers.
I would suspect such accounts receive far more audit activity than those of us who earn our miles by actually flying.
I would suspect such accounts receive far more audit activity than those of us who earn our miles by actually flying.
Why?
I get most of my miles that way, all it takes is having business spend and deciding to put it on an airline rewards card. I regret doing it on DL but it's worked out well on CO/UA.
Airlines seem pretty happy to sell those miles to CC companies, and they actually get hard cash for them.
I get most of my miles that way, all it takes is having business spend and deciding to put it on an airline rewards card. I regret doing it on DL but it's worked out well on CO/UA.
Airlines seem pretty happy to sell those miles to CC companies, and they actually get hard cash for them.
Those who think BIS miles worth more are in delusion. Airlines make far more money in selling miles (and charging auxiliary fees) than actually flying passengers. Read the annual reports if you dont believe.
Aug 21, 2012, 10:01 pm
#90
Join Date: Apr 2003
Location: IAD/DCA
Programs: UA 1K/MM, Marriott Pltm, Hyatt Diamond, spg Pltm
Posts: 356
OP's problem?
Yes, he vanished. I don't understand his problem. All he said is that he could not log into his account. Talked to CS. But not to MP.
Maybe he just mistyped his PIN or pswd.
Maybe he just mistyped his PIN or pswd.