Payment for a referral is not interest, so it would be reported on a 1099-MISC if the total payments in a year exceed the reporting limit of $600.
Refer A Friend Program Incentive-IRS Tax Forms
We want to begin a refer a friend program where a customer would receive a $25 gift certificate to a local business if they refer a friend who opens a new account at our bank. Is this reportable on a 1099-INT or a 1099-MISC? I'm looking for guidance on the IRS website and am having a difficult time locating it.
First published on 10/08/2017