6 Responses

  1. Golfingboy
    Golfingboy at |

    I think it will be harder for the IRS to dispute points earnings from CC spend because those are part of the benefits we paid $XXX in the form of annual dues. In other words, those points are not free and there is also the ‘rebate’ argument. However, promotional points that does not require any spending or payment of fees on a customer’s part makes it harder to dispute.

    Interesting development indeed.

  2. Hyacinthe
    Hyacinthe at |

    I wonder what is Canada’s Revenue Agency position on that subject…

  3. DaveS
    DaveS at |

    It seems this would open up lots of cans of worms. Just about every program has multiple ways of obtaining points and multiple ways of putting them to use. A lot is not clear, but which programs, in which uses, do you identify this ruling as definitely or very likely applying to?

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  5. Alan
    Alan at |

    Haha I thought the HMRC (UK tax agency) were bad, but the IRS clearly have them trumped with this sort of rubbish 🙂

  6. unavaca
    unavaca at |

    Citi has been issuing 1099s for redemption of TYPs in conjunction with bank (not credit card) accounts — both signup bonuses and interest (both variable and fixed). Any points redeemed that are attributed to points earned on the bank side will be 1099’d based on the actual price of the revenue ticket they were redeemed for.

    They won’t issue a 1099 if it’s below some total annual redemption amount (can’t remember the amount off-hand).