1. Yes the IRS would consider that income, if they found out which may not be likely.
2. How are you logging it? If the boss lets you be the PIC for free that's legal to log. But if he's logging it, you probably cannot. Not legal to log dual for an operation like that, there has to be some reason for instruction to occur, other than time building.
3. Professional pilots cringe when people talk about flying for free.