You are absolutely correct. The spokesperson responded in writing which meant the response was well thought out and articulated carefully. While they are leaving open the possibility the miles could be taxable they are neither declaring the miles to be non-taxable or taxable. This was a very well calculated answer that basically tells you nothing.

I think there is a very big misconception of the IRS and how taxes are determined. Let's say you are one of the average 1% of Americans that are randomly audited this year and they question your devaluation of the 1099 FMV. You are not dealing with some mystery IRS phantom that works in the shadows in Washington. You are dealing with a local IRS agent. If you present the agent with supporting documentation on why you assessed the value for the miles at a different amount then the agent is likely going to allow that because there is no definitive answer to dispute otherwise. We're not talking about major amounts of money, at most $350 if you got a 1099 for $1,000 and a 35% tax bracket.