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| IRS Won't Tax Frequent Flyer Miles Received for Business Travel But Used for Personal Purposes Internal Revenue Service [IRS]  [Official Guidance] Mar. 4, 2002 Excerpt: [T]he IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel.... This relief does not apply to ... benefits that are converted to cash, to compensation that is paid in the form of travel or other promotional benefits, or in other circumstances where these benefits are used for tax avoidance purposes. |
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