Source: IRS Announcement 2016-2

Generally, gross income includes all income from all sources including property and services “given” to taxpayers (e.g., a car won on a game show). The IRS exempts certain items from the definition of income: They have now expanded their earlier Announcement 2015-22 to exempt free data protection services given at no cost to customers, employees or other individuals whose personal information may have been compromised to NOW INCLUDE such services BEFORE a data breach occurs. (This does not apply to cash provided in lieu of identity protection services).