Sen. Sherrod Brown targets Citibank over tax forms
Dayton Business Journal — U.S. Sen. Sherrod Brown, D-Ohio, is requesting Citibank stop sending unnecessary tax forms to customers.
The Democratic senator on Monday sent Citibank CEO Vikram Pandit a letter asking the official to stop sending 1099 tax forms to customers who receive frequent flier miles in return for opening a checking or savings account.
According to Brown, Citibank has been incorrectly categorizing frequent flier miles as rewards and prizes, which are considered taxable income, with a valuation of 2.5 cents per mile. However, in 2002, the IRS ruled that frequent flier miles should not be classified as rewards or prizes because of the “numerous technical and administrative issues relating to these benefits.”
