It's Official: Frequent Fliers Need Not Fear The Tax Man

Were those frequent flier miles you earned on that flight business miles or personal miles? What about the ones you earned with your credit card? What about the ones you earned with your long distance service? Can't figure it out? Well, neither can the IRS, and Wednesday they finally admitted it.

After years of speculation of "will they" or "won't they" make frequent flier miles taxable, the IRS has announced that they will "not assert" that frequent flier miles accrued for business are taxable when converted for personal use, according to an article in Wednesday's Washington Post.

The IRS has talked about this issue since frequent flyer mile programs came into vogue in the early 1980s. But it has never pursued an enforcement program to tax the business miles used for personal gain.

"It's very difficult for taxpayers to comply," said agency spokesman Frank Keith. "They don't have to report them. We will deem them to have met their tax obligations."

So there you have it. Fly the friendly skies, and don't worry about the tax man.

You may like these other stories...

Hertz and Icahn make peaceThere won’t be any nasty, protracted proxy battle between Hertz Global Holdings and activist investor Carl Icahn. The rental car chain agreed last Thursday to give Icahn – who has...
For bitcoin users, the taxman cometh. And you best know how to calculate taxes owed on what the IRS calls convertible virtual currency.In March 2014, the IRS issued Notice 2014-21, which declares virtual currency will be...
Majority of House of Representatives urges leadership to preserve cash method of accounting for tax purposesA bipartisan majority of the House of Representatives – 233 members – has signed a letter urging House...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.