Page 59 of the IRS 2017 Tax Guide for Individuals has a section titled "Gift for opening account". It states for deposits of less than $5,000.00, gifts or services valued at more than $10 must be reported as interest. For deposits of $5,000 or more, gifts or services valued at more than $20 must be reported as interest. The value is determined by the cost to the institution.
Would it make a difference as far a what type of account was opened? Example, interest bearing or non interest bearing account?
What all would need to be included in determining the cost to the institution? Example, the bank gets billed $10.00 for each gift on the invoice but there is a separate charge for shipping, storage....
Would anything need to be disclosed to the customer opening the account if the gift was over $10 and the opening deposit was under $5000 or the gift was over $20 and the opening deposit was over $5000?