Please cite your evidence other than the fact that Citi has issued 1099s in the past? Chase also use to issue UR points for Freedom holders who also were Chase Checking account customers and to the best of my knowledge Chase never issued 1099s.

And I still suggest that, fundamentally, miles aren't a true currency or asset: they're more akin to a coupon you take to the grocery store to get 50 cents off a box of cereal. (Albeit a different mechanic at play: you get 50 cents off some future box of cereal. Assuming it's a cereal that nobody else wants. And it's Tuesday.)

I wonder if any taxpayers have challenged this. Still seems very much a niche case and far down on the miniscule impact end of things. What's the rationale for considering them income on bank accounts only, but not credit cards, flights, or other sources? Was the IRS even the driver behind this, or is it in the banks' interest (for their own financial purposes) to issue 1099's on bank account miles?

if you believe FF miles/awards belong to your employer, then to be consistent you must:

• surrender any cash back, discount, or miles you receive from using your credit card for any reimbursable expense.
• surrender any restaurant receipt or coupon that says "free dessert on your next visit" or any coupon from an expensable activity.
• give your employer all of your starbucks 'stars' acquired from purchases made while on business.
• surrender any F amenity kits, hotel shampoos, pens, etc that you collected or received while on a paid trip.
• if you achieve airline or hotel status through employer-paid trips, remember to reimburse your employer for the full value of (1) free inflight meals or hotel breakfasts, (2) free wifi, or (3) anything else that you received because of status that you would have needed to pay for, without status.

in other words, it's ridiculous. it doesn't have to be complicated. if you receive something on a paid/reimbursed trip that is (1) fully fungible and (2) refunds, reimburses, or defrays costs borne by the payer, then it belongs to them. otherwise, it's yours. points and miles are not fungible. coupons do not reimburse or refund. IDB payments are for the inconvenience, not to reimburse (although any added costs resulting from the disruption should come out of that payment first).

Lots of interesting fantasy approaches to tax law here. Not many from tax lawyers or CPA's. Before you rely on them, you might want to check with your tax lawyer or CPA.

Penalties & interest can add up to quite hefty amounts.

There doesn't have to be a 1099 issued for something to be income, it's just easier for it to come to IRS' attention.

Are you claiming that the IRS taxes FF miles/points?

I just re-read my post 5 times just to make certain. If you think that I "claimed" that, would be interested to see how.

You implied that penalties and interest would have to be paid on *something*. Given the context of this thread, it's natural to assume that you were talking about taxable points/miles. If you were strictly referring to cash IDB payouts from airlines, or even VDB vouchers that you are permitted to sell, it was not clear.

Exactly. The past 5-6 pages have been clearly discussing one particular issue and then Often comes in discussing IRS penalties and fantasy tax lawyers without specifically pointing to something and then gives me a snarky reply when I ask him to clarify. lol... Love FT sometimes! :D

And for what it's worth, from the moment this thread veered into tax land (which obviously seems to interest us more than whether the OP repays his boss), I readily acknowledged that I'm totally speculating on something I hope never happens. Allowing the miles to exist in a nebulous legal state has its advantages, for us (well-informed users of miles), the airlines, and the numerous government entities who would otherwise need to be a lot more involved in miles than they are now.

"Please cite your evidence other than the evidence that already proved your point."

LOL. Come on.

Also, Citi still segregates the banking points from the CC points. Citi doesn't do that based on a whim or because of an IT limitation.

No you come on brother. Cite me an IRS rule that says FF miles/points will be taxed.

Is this some sort of performance art or something? As has already been discussed, the issue was already litigated and the tax court sided with the IRS:

http://www.forbes.com/sites/kellyphi...d-by-citibank/

The fact that the IRS isn't currently enforcing this on a widespread basis doesn't mean that it can't and won't.

Oh My God, I can't do this anymore. Just a big circle jerk going back and forth. Banking points, YES!!!!!!!!!!!!!!!!!!!!!!!!!! But nothing else. Oh My God!!

As has also been explained about a dozen times, there's less and less difference between "banking points" and CC points.

A 50,000-point TYP bonus from Citi after spending just $3,000 — swipe fees: $90, tops — isn't remotely a "rebate," by any rational definition.

If I give you $10 and you hand me back a $100 bill, you didn't give me a "rebate" — you gave me a gift.

Are you a tax lawyer?