I have searched and read several threads concerning gifts/ bonuses for accounts in addition to reading the "Paying a Bonus on Deposit Accounts" article. I'm needing clarification. If the fair market value of the gift meets the definition of a "de minimis premium" - non-cash and fair market value less than $10 - is the gift considered interest by the IRS? Does the fair market value of the gift need to be aggregated with any other interest the account earns and reported on a 1099? It's my understanding that the value of the gift is not considered interest if the gift meets the definition of "de minimis permium." Is this correct?