Originally Posted by sailingfun

Employees and immediate family are exempt under federal law from imputed taxes on airline passes. Passes given to those outside of immediate family either have to pay what the IRS considers a reasonable charge or pay imputed income on the value of the tickets. This is a IRS not Delta rule and consistent with how perks like a company car are taxed in any business.
The only miracle is that we have been able to hold onto the exemption for immediate family!