Originally Posted by
satchip
You don't want that waived. That keeps the IRS from taxing your pass privileges as income. This way you are paying for them.
Originally Posted by
Timbo
The excuse I heard about the $50 non-rev fee was, if the company didn't charge us 'something' for the passes, then the IRS would want to tax us on the imputed value of every pass we used. I'll gladly pay the $50/yr vs. paying Uncle the taxes on all those free non-rev tickets value.
Not true. Our flight benefits are not taxable because they are "substantially no cost" to the company--i.e., the seat would've been empty if not occupied by the non-revver (no lost income) and the marginal cost of having the non-revver there is negligible (no added expense).
Take a look at any other airline that doesn't charge an "admin" fee--their non-rev is still not taxed....