Which of the following best states the Internal Revenue Service's position on the taxation of frequent flyer miles earned by travelers? Question 4 Answer Frequent flyer miles must be reported as income when they are earned by the taxpayer Frequent flyer miles must be reported as income when the taxpayer uses them to obtain a free airline ticket Frequent flyer miles are excludable from income The IRS will not pursue collection of tax on miles or tickets obtained with miles The IRS has not taken a position on this issue