1099-INT Requirement for Deposit Promotion

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Question:

If we have a deposit promotion which pays the client a $50.00 bonus to open an account, are we required to send them a 1099-INT at the end of the year?

Answer:

If the payment was for opening the account, then in the eyes of the IRS it is an interest payment and requires reporting.

First published on BankersOnline.com 7/8/13