If we have been reporting to IRS the bonus paid to customers accounts as 1099INT as opposed to 1099MISC should we be concerned? The customer was told up front the bonus would be interest.

Depends on what the bonus was paid for to determine the proper reporting.

The bonus was not tied to the opening, adding to, or maintaining of an account. Thus it would have been reported as a 1099 MISC, and technically should not have been reported to the IRS as it was under $600.

It was inadvertently reported as 1099 INT.

The customer IMO doesn't have a gripe, since whether it was interest or a bonus, it's still income. In fact, interest income might be treated more favorably in some cases (especially at the state level) than non-interest income.

John is correct. Even though the threshold for information reporting on a 1099MISC is $600, the customer is still obligated to claim lessor amounts on their income tax returns.

Thanks for the response. - Lori