I ended up getting a good result. The problem is that I don't know why. It could be great news for the position that the miles have no value, or it could be completely irrelevant.
I received two letters from Citi. In response to my first letter, the first correspondence from Citi told me that they had made a mistake. I had received 20,000 miles, not 30,000miles, from the promotion. The letter stated that my 1099-MISC would be amended to change the income from $750 to $500, since the value of 20,000 miles is $500.
I wrote back and asserted that the value of the miles should be $0.
I received a second letter that did not reference my second correspondence. It states:
"During a subsequent review of your account, it was determined that the information we reported was incorrect. Our records have been adjusted and as required, a new 2010 "amended" Form 1099-MISC will be sent to you under separate cover. Your 1099-MISC has been amended to reflect the following:
Account Type Year Amount
Promotion 2010 $0.00
Here is the problem. A 1099-MISC is only required for income exceeding $600. The decision to change it to $0 could have been as a result of the asserted value of the miles dropping from $750 to $500; with $500 being the same as $0 with respect to the issuer of the 1099-MISC. Or, instead, Citi might agree now with the assertion that the miles have a value of $0, causing the 1099-MISC to be amended to reflect $0 value.
I don't know which, and I may never know.