AMEX 1099-INT or 1099-MISC who got one?
Jan 27, 2021, 5:48 am
#16
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Feb 6, 2021, 6:19 am
#19
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I received two: one for $550 one for $450 on referrals.
I always want to mark these down 40% because that’s what AMEX let’s you take a statement credit for (0.006/pt)
I always want to mark these down 40% because that’s what AMEX let’s you take a statement credit for (0.006/pt)
Feb 6, 2021, 11:45 pm
#20
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Feb 8, 2021, 4:03 pm
#21
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One need not accept the valuation on a 1099. But, one must then provide one's own fair market value and a written explanation of the reasoning.
Make sure it's worth it to you as marked down 1099's are an audit red flag with a flare shooting out of the flag.
Make sure it's worth it to you as marked down 1099's are an audit red flag with a flare shooting out of the flag.
Feb 9, 2021, 11:16 pm
#22
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I've never tangled with the IRS over anything, but I wouldn't hesitate to defend my position if I felt confident that I'd ultimately win. That said, I wouldn't have that confidence with a battle over FMV of airline miles. Thankfully, Amex is keeping its FMV claim reasonable at 1¢ per MR point.
Feb 10, 2021, 8:20 am
#23
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Bask Bank, which awards AA miles in lieu of interest, issues 1099-INT based on $0.0042 per mile. One could make an argument that points convertible to airline miles should be similarly valued. There is, of course, a counterargument based on other redemptions.
Feb 10, 2021, 12:03 pm
#24
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Wow, that's low. As you say, there are arguments and counterarguments on this. We see them all the time on FlyerTalk. As far as I know, this has never been litigated to resolution in any reported court decision in a tax case.
Mar 9, 2021, 5:33 pm
#27
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It's worth noting that a 1099-MISC never creates a tax liability for anyone. It's merely a tax-compliance mechanism. Failure to account for 1099-MISC data in your return might trigger an IRS request explain the discrepancy. It might be that without the 1099-MISC form, the IRS would never have known about the undeclared income, but that's akin to a situation where no cop was there to see you run a red light.
Mar 9, 2021, 11:25 pm
#28
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When bank accountants start doing something new, somehow I doubt they are motivated to improve somebody else's IRS compliance. Is there perhaps some benefit to the banks in classifying former expenses as customer income?
Mar 9, 2021, 11:56 pm
#29
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