Originally Posted by
QL_714
Do really think that churning an item for a profit is what this ruling is actually addressing?
First of all the private letter ruling is not binding precedent, it was only a response to an individual tax payer.
But, by releasing it the IRS was basically giving its view on how it felt about the "cash back" or "rewards" given by credit card.
There is not way you could be in a position - unless you work for the IRS - to say that doing the cash back by churning coins is any different then getting cash back from regular purchases.
Unless you have seen something from the IRS that I haven't read yet?