Author Topic: Citibank 1099 (Read 103865 times)

Frequent flyer program – American uses the incremental cost method to account for the portion of its frequent flyer liability incurred when AAdvantage members earn mileage credits by flying on American or its regional affiliates. In 2007, the Company changed its policy regarding the life of AAdvantage mileage credits. Effective December 15, 2007, AAdvantage members now must have mileage earning or redemption activity at least once every eighteen (18) months in order to remain active and retain their miles. Prior to this change, mileage credits automatically expired after thirty-six (36) months of inactivity in the AAdvantage member’s account. The Company recorded a one-time benefit of $39 million as a component of passenger revenue in 2007 to reflect the impact of the additional miles expiring upon the change of expiration period for AAdvantage mileage.

The Company considers breakage in its incremental cost calculation and recognizes breakage on AAdvantage miles sold over the estimated period of usage for sold miles that are ultimately redeemed. The Company calculates its breakage estimate using separate breakage rates for miles earned by flying on American and miles earned through other companies who have purchased AAdvantage miles for distribution to their customers, due to differing behavior patterns.

Management considers historical patterns of account breakage to be a useful indicator when estimating future breakage. Future program redemption opportunities can significantly alter customer behavior from historical patterns with respect to inactive accounts. Such changes may result in material changes to the deferred revenue balance, as well as recognized revenues from the program.

Tax · « **Reply #146 on:** July 21, 2013, 03:27:42 AM »

Quote from: churnbabychurn on July 18, 2013, 11:36:13 PM

well technically you could but it's not practical for large corporations

So in plain English even though it is ok with the Accounting Principals Generally Accepted in the United States as well as the IRS, international companies will have a problem with International Accounting Principles. Did you work for international companies?

churnbabychurn · « **Reply #147 on:** July 21, 2013, 08:09:24 AM »

Quote from: Tax on July 21, 2013, 03:27:42 AM

So in plain English even though it is ok with the Accounting Principals Generally Accepted in the United States as well as the IRS, international companies will have a problem with International Accounting Principles. Did you work for international companies?

The LIFO conformity rule means that the IRS does not allow you to report both LIFO and FIFO. Since IFRS doesn't allow LIFO and large corporation's would need to file international reports in countries that they operate in, I say misvara that they can't use LIFO.

I'm just CBC btw, not a tax lawyer.

Yehuda25 · « **Reply #148 on:** March 04, 2014, 03:21:44 PM »

so if I go for the 100k offer now from citi with aa, would I get hit with a 1099

AJK · « **Reply #149 on:** March 04, 2014, 03:24:46 PM »

Yehuda25 · « **Reply #150 on:** March 04, 2014, 05:47:20 PM »

thank you for the reply, what makes you so sure though ? experience ? do they only 1099 for banking related bonuses ?

AJK · « **Reply #151 on:** March 04, 2014, 05:52:35 PM »

Right. Right.

Redbull3 · « **Reply #152 on:** March 05, 2014, 09:59:43 AM »

Quote from: AJK on March 04, 2014, 03:24:46 PM

No.

+1. If there is a spend requirement attached to the miles there will be no 1099.

sb613 · « **Reply #153 on:** May 17, 2014, 11:43:29 PM »

Quote from: Redbull3 on March 05, 2014, 09:59:43 AM

+1. If there is a spend requirement attached to the miles there will be no 1099.

Are you saying this from experience?

Ez · « **Reply #154 on:** May 18, 2014, 02:21:38 AM »

Quote from: sb613 on May 17, 2014, 11:43:29 PM

Are you saying this from experience?

Fact that anyone in this game can vouch for.

aradisc · « **Reply #155 on:** September 11, 2015, 05:26:18 PM »

I just got a W-9 form from Citibank demanding my TIN (SSN). If their IT had their head on straight they would realize they already have it from a bunch of CCs, and probably from other sources as well.

That stated purpose of this request is that

Quote

If we do not have a current certification of your tax status, U.S. tax law requires us to backup withhold on all interest and dividend income earned on your accounts(s).

I had a CitiGold account this year that I opened for the AA bonus and later closed. Does receiving this W-9 form mean that I'm likely to get 1099'd?

I seriously made about $1 in interest over the life of the account. Citi is threatening to "backup withhold" some fraction of $1 that they don't even have any more as the account is closed- and a possible "$50 penalty imposed by the IRS under section 6723".

Am I actually obligated to do anything about this? Can I just report the $1 in interest on my taxes, and the 1099 only if it happens?

Menachem613 · « **Reply #156 on:** September 11, 2015, 06:08:08 PM »

Quote from: aradisc on September 11, 2015, 05:26:18 PM

I just got a W-9 form from Citibank demanding my TIN (SSN). If their IT had their head on straight they would realize they already have it from a bunch of CCs, and probably from other sources as well.

That stated purpose of this request is that
I had a CitiGold account this year that I opened for the AA bonus and later closed. Does receiving this W-9 form mean that I'm likely to get 1099'd?

I seriously made about $1 in interest over the life of the account. Citi is threatening to "backup withhold" some fraction of $1 that they don't even have any more as the account is closed- and a possible "$50 penalty imposed by the IRS under section 6723".

Am I actually obligated to do anything about this? Can I just report the $1 in interest on my taxes, and the 1099 only if it happens?

They don't project the amount of interest income to be earned by you before requesting a W-9.

Ephraimh · « **Reply #157 on:** January 01, 2017, 01:21:29 PM »

A Citi rep told me now on the phone that redeeming double cash rewards triggers a 1099.. just another DROPR? Anybody with experience?

tzifanya54 · « **Reply #158 on:** January 01, 2017, 01:27:19 PM »

Quote from: Ephraimh on January 01, 2017, 01:21:29 PM

A Citi rep told me now on the phone that redeeming double cash rewards triggers a 1099.. just another DROPR? Anybody with experience?

Redeemed many $$$$ over the years with no 1099.

Ephraimh · « **Reply #159 on:** January 01, 2017, 02:07:37 PM »

Quote from: tzifanya54 on January 01, 2017, 01:27:19 PM

Redeemed many $$$$ over the years with no 1099.

The rep was super confident, he was like "Yes, absolutely, we were told to answer that the redemption is taxable and you'll get a form in the mail" so I wanted to get a data point, thanks.