WSJ: Tax Treatment of Credit Card Rebates

Interesting item in the Wall Street Journal:  Taxing Credit-Card Rebates, by Rachel Emma Silverman:

The IRS hasn't issued any specific public guidance on whether cash-back card rebates are subject to income tax, says an agency spokesman. But the IRS did issue a private-letter ruling in 2002 that said certain card rebates aren't included in a taxpayer's gross income. Although a private-letter ruling applies only to the taxpayer that applied for it, such rulings are considered to be a gauge of the agency's thinking on a particular issue. Tax advisers say rebates are generally considered to be a reduction in purchase price, and not likely to be taxed. Rebates on purchases made for business or investment may have more complex treatment, so consult a tax adviser.