you may wish to contact AA and find out how they arrived at this tax amount and then dispute it. Also, you should visit a savvy tax person who is not just H&R block style... a bit more out of the box of a thinker... Legal but savvy.

Contest this and instead, offer something more along the lines of what the customer sees it as... Worse case: they ask you to pay more taxes. best case: you get to not have to do that.

I got a tax of $1 on every 1000 miles I earned from Sprint. 50,000 miles would have been $500 bucks.

Now, they gotta report to the same IRS... why is it so different?

I would so fight this! At leastto reduce it.
Or, send the award back and tell them where the sun dont shine.

congrats though!
MM