Originally Posted by CVG_Kid

I cannot speak to actual cases except to say that Scenario #2 is the case with Citi's banking bonus' and you can see that they are producing 1099s. The distinction is Citi's interpretation of the 'prize/award' provisions of the 1099 which seem to be reluctantly supported by the IRS in the article below:

http://www.latimes.com/business/la-f...1163342.column

Note that the Citi spokesman makes the distinction based on 'purchases'.

So far it seems each bank has made their own interpretation of the code; Citi's being the most impactful. I have not information about Chase issuing 1099s but it would be a concern only if they adopted the same interpretation as Citi.