Originally Posted by
glex50
When you have miles awarded as a result of travel for work, it could conceivably be seen as an extra form of compensation...IF the miles had any kind of market value associated with them.
The IRS issued a position about this years ago:
http://www.irs.gov/pub/irs-irbs/irb02-10.pdf They didn't question that the miles have value, but in light of the administrative difficulties surrounding the taxation of employee-earned miles, they decided that they would not consider such miles to be included in income.
Other than that position, the IRS has had precious little to say about miles.