I just spoke with IRS agent for 1099-INT and here's what I found out.
According to one of their publications (i think she said it was 550), the value of the gift is determined by the cost to the financial institution.
So Citibank is totally wrong at showing the value of the miles to be $0.025. In the response to my request for an amended 1099-INT that I sent to citibank, they never gave me an explanation of their cost. I severely doubt they paid $0.025 per mile.
The agent also told me, if you believe your 1099-INT is incorrect, and you have not been able to have it corrected by the financial institution, you are allowed to use your own estimate for the 1099-INT amount.
If the financial institution sends you an amended 1099-INT later, you need to file an amended return with the new amount.
I'll be using my estimate of miles valuation at $0.005, which lowers my 1099-INT amount to $25 from $125.