Does One Have To Pay Tax On Frequent Flyer Awards?
According to the laws stated under the provisions of the Internal Revenue Service, frequent flyer awards can only be taxed in specific cases. If your flyer award is acquired through a business trip and the same ticket is used for personal travel, then it will be taxed. It is not often that this situation can be proven—so for all practical purposes, the rule may as well be excluded from the IRS rules. It has been said that the federal government has tried to secretly tax transactions by the frequent flyer programs. I’m sure that someway, the government will soon succeed in imposing tax on all awards offered to airline customers. What the government can accomplish should not be taken lightly. frequent flyer
Add comment August 10th, 2008