So Bloomberg is wrong?
What was the actual amount owed? How much of the purchases were for cash and not goods?
Here is the case, no clue what Bloomberg is talking about:
https://milestomemories.com/wp-content/uploads/2021/02/KONSTANTIN-ANIKEEV-AND-NADEZHDA-ANIKEEV-Petitioners-v-COMMISSIONER-OF-INTERNAL-R-1-1.pdfAll of petitioners’ charges of more than $400 in single
transactions with the American Express cards during
2013 and 2014 were for Visa gift cards, reloadable
debit cards, or money orders. In 2013 petitioners’
charges on the 1005 Card totaled $1,219,077. Of this
amount, $1,208,376 was for charges of more than $400
in single transactions for Visa gift cards, reloadable
debit cards, and money orders. Accordingly, over 99%
of the charges on the 1005 Card during 2013 were
for Visa gift cards, reloadable debit cards, and money
orders. Petitioners made $10,702 in purchases during
2013 that were not for Visa gift cards, reloadable
debit cards, or money orders. In 2014 petitioners made
charges totaling [*9] $5,184,033 on their American
Express cards for Visa gift cards, reloadable debit
cards, and money orders.
*******
On March 23, 2017, respondent issued a notice
of deficiency to petitioners for 2013 and 2014
determining additional “other income” of $29,775 and
$265,485, respectively, from the Rewards Program. In
the first amendment to answer, respondent increased
the amount of the other income from the Rewards
Program to $36,200 for 2013 and $277,275 for 2014
which increased the tax deficiencies from $8,264 to
$9,928 for 2013 and from $89,847 to $93,845 for 2014.