We had a marketing promotion in March 2005 that stated "Receive $25 if you open a new deposit account with us". Of course we had the deadline information on the flyer but we did not have a disclosure statement stating that the "$25 may be subject to tax reporting"...If we failed to disclose and if we send 1099 INT to these customers would there be any liability? I know reputation risk may affected, but are there others risks involved?

Please help...Thanks in advance.

Contact your legal counsel. Not only are you dealing with IRS law here, but also state revenue laws.

State revenue laws? We are a Texas Bank.

Any other thoughts?

Thanks Flaire...

Are there any other thoughts out there?

Thanks again.