Research Problem 1

Research Problem 1 - tax liability. The announcement...

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Fact Latrell is using frequent flyer miles earned while traveling on company paid trips for a personal trip. Question How much income does Latrell have to recognize as a result of purchasing a plane ticket with his frequent flyer miles. Answer to the question [one sentence] None of the $1,200 for the round-trip to Milan would be included in Latrell’s income. Support Announcement 2002-18 Discussion The IRS has released an announcement regarding the treatment of frequent flyer miles and their
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Unformatted text preview: tax liability. The announcement directly states that the 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 taxpayers business or official travel....
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