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Released: January 31, 2012
IRS clarifies whether airline miles are taxable
Source: David Lazarus, L.A.Times (Free Registration)
Frequent-flier miles are taxable? Really? That sentiment sums up the reaction from readers — and particularly accountants and lawmakers — to last week’s column on Citibank sending tax forms to customers who received thousands of airline miles in return for opening a new account.
Citi is notifying the Internal Revenue Service that the miles represent miscellaneous income, leaving customers on the hook for paying related taxes or possibly facing a greater risk of being audited.
Read Full Article: IRS clarifies whether airline miles are taxable
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