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#736318 - 05/18/07 08:13 PM Gift Card Rewards
J2C Offline
Diamond Poster
Joined: May 2004
Posts: 1,475
Big Brother knows and that's a...
We currently have a referral program for our customers to receive a $25 merchant gift card when they refer a new customer to us. The face value of the card is $25. We (the bank) are being charged a $3 fee for each card that is issued. Question is does the bank issue a 1099 to the customer for the $25 or for $28? Our invoice isn't broken out down to show the fees and the cards seperately, it just shows them as one total.

Help?!?!
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#736431 - 05/18/07 08:52 PM Re: Gift Card Rewards J2C
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,958
Galveston, TX
Payment for referrals are not interest and would be reported under the 1099MISC rules which have a threshold of $600. You are not giving these for referral on mortgage loans - right?
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