Skip to content

$100 Incentive Bonus-Disclose IRS Report on Ad?

Answered by: 

Question: 
We are offering members a $100 incentive bonus if they open a checking account with direct deposit which would start within 60 days. We understand all of the disclosure requirements for the $100 payment. The argument is, must we disclose in the ad that the $100 will be reported as interest to the IRS? We of course will be sending the member a 1099-INT and reporting it to the IRS, but are we required to disclose that?
Answer: 

If you are specifically paying for the establishment of the direct deposit and not the opening of the checking account, the $100 would be MISC income and not interest and subject to 1099MISC reporting and not 1099INT reporting.

First published on 05/12/2019

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics