Originally Posted by
AA53
A good move since he would have been liable for a tax bill of relatively large proportions should he have accepted.
I dont think the IRS has figured out how to tax miles yet ... have they?
Edited to add: STOP SCARING ME LIKE THAT
apparently not... doesnt mean they won't in the future though (although the term "prospectively" is a bit comforting)...
http://www.hr.com/servlets/sfs?&t=/D...iles%253F%255C
Since the IRS has not yet resolved those issues with regard to personal use of business-related frequent flyer miles, it has decided not to treat such benefits as taxable income at this time. The IRS has not closed the door on such taxation completely, however. The announcement indicated that future guidance may reflect a different view, clarifying that "any future guidance on the taxability of these benefits will be applied prospectively."