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