[PopAlongKid]

> IRS does not say cash back rewards from credit card spend is taxable income

No, it's just a rebate/discount made directly to the purchaser. For tax purposes, if they buy something for $100 and get a $2 cash back, it just means they spent $98.

It's very different when there's a third party - employee - involved. The "reward" is going to someone who never spent any money, and so generally would be considered taxable compensation to them. OF course, regulatory exceptions in the tax code are nothing new, and it seems like this might need to be re-visited soon.

[lotsofpulp]

That is a good point. I guess it might be too complex to keep track of what entity paid for which points and so they let it slide.