FlyerTalk Forums - View Single Post - Buying large quantities of miles
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Old Jul 7, 2010 | 9:55 am
  #64  
techboyds
 
Join Date: May 2008
Posts: 143
Fairmark's forums are generally a pretty good source (populated by CPAs and the like). Here's a relevant thread.

The upshot is that there appears to be no penalty, though some suggest that unusual activity could cause the IRS to take a closer look, which I suppose isn't a problem if one is on the up and up, though I'd prefer to avoid the experience regardless.
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