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Refer A Friend Program Incentive-IRS Tax Forms

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Question: 
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.
Answer: 

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.

First published on 10/08/2017

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