Tax Gurus,

After years of getting the proverbial shaft, government employees will now be able to accumulate and use (however we see fit) frequent flier miles.

However, today I saw something that said "the IRS has advised GSA that freqent flier benefits may be taxable."

Is this true? Are people having to figure frequent flier miles into their tax returns each year? I have some friends who get extensive freq flier miles in their business travels, and they've never mentioned them as anything but a good thing. I'm sure they would have griped if they had to pay taxes on them.

Thanks,

- Tom