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#1881848 - 12/30/13 02:58 PM New Year's Baby promotion
Louie72 Offline
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Joined: Jul 2012
Posts: 104
Our Marketing Department would like to offer a New Year's Baby gift, that includes a savings account set up for the new baby. Upon opening the account, the bank would like to match the initial deposit up to $100.00. Does a promotion like this require a 1099 form to be sent to the customer and are there any other compliance issues that need to be taken in consideration. Thank you for you help.

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Marketing
#1881855 - 12/30/13 03:20 PM Re: New Year's Baby promotion Louie72
1 Peter 5:7 Offline
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1 Peter 5:7
Joined: Jun 2001
Posts: 1,339
TX
1099MISC threshold is $600.

You will have to figure out how an account gets set up. UTMA? All your CIP requirements will have to be met.

If Marketing wants publicity around the gift, a release will be needed from the family to use names and photos.
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Opinions are mine not my employer's, and should not be taken as legal advice.

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#1881976 - 12/30/13 07:34 PM Re: New Year's Baby promotion Louie72
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,318
Galveston, TX
If it is for opening the account, it would be a 1099INT.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1881984 - 12/30/13 07:48 PM Re: New Year's Baby promotion Louie72
Louie72 Offline
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Joined: Jul 2012
Posts: 104
Thanks I Peter and ricarey.

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#1882728 - 01/02/14 10:16 PM Re: New Year's Baby promotion Louie72
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,630
Cape Cod
Unless your state has a provision in its deposit account laws allowing for an "adult for minor" account form other than UTMA or UGMA, don't allow an account to be set up like that. An example would be "Randy Carey for Baby Carey." That's an open invitation to problems down the road. And don't even think about accepting an account set up with the baby as a joint owner, even if your state allows minors to be joint account holders. The simple fact is that the infant can't sign the contract, so it cannot be an owner of the account.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#1885361 - 01/10/14 06:33 PM Re: New Year's Baby promotion John Burnett
Louie72 Offline
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Joined: Jul 2012
Posts: 104
Thank you John.

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