A couple found a credit card with no cap on its top cash back tier. They turned $50,500 of available credit into $6.4 MILLION in fake spending. The IRS took them to court trying to tax the rewards as income. The couple won. – David and Tatyana Anikeev found that the Blue Cash American Express card paid 5% cash back on everyday purchases after the first $6,500 a year, with no cap after that. – They started buying gift cards and money orders directly with the credit card, then used that same cash to pay off the card balance they had just charged. – Each cycle generated 5% cash back on money that never actually left their own pocket. – To pull it off, they ran roughly 125 separate payments through just $50,500 in combined credit limit over less than two years. – Total spending was $6.4 MILLION. – Depositing over $4 MILLION in money orders into their bank accounts put them on the IRS's radar. – The IRS argued the cash back should be taxed as income since it came from buying cash equivalents, not real goods. – The case went to the US Tax Court. – The court ruled the cash back was a legitimate, non-taxable rebate, the same as any other credit card reward. – The couple kept the money. – Credit card companies have since capped almost every high-cash-back tier to close this exact loophole. A couple found a credit card with no spending cap on its top reward tier and turned $50,500 of available credit into $6.4 million in fake purchases. The IRS sued to tax it as income. The court sided with the couple.