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.