The Hirsch Airline Miles Settlement is open for registration. File by November 27th.
If you received an IRS Form 1099 from Citibank reporting to the IRS that you received income attributable to the receipt of promotional American Airlines miles between January 1, 2009 through July 13, 2017, you may be entitled to payment from a class action settlement.
The lawyers get up to $1.2 million. The two name plaintiffs get $25,000 and $12,500 respectively.
Those who register and affirm they reported and paid taxes as a result of a Citi 1099 are eligible for up to $245, those who do not affirm are eligible for up to $40, though how much is actually paid out to each person depends on how many people sign up. The total settlement pool is $1.75 million.
As usual the lawyers get almost as much as everyone who was supposedly harmed.
Ultimately whether or not Citi reported value received by a consumer to the IRS has nothing whatsoever to do with tax liability. If they didn’t report it and it was taxable you’re on the hook to report it yourself. And if they reported it and it shouldn’t be taxable, you should dispute the report.
The failure to disclose that they were going to report economic activity to the IRS always struck me as strange. But it makes sense that Citi might want to make this nuisance suit go away.
If you’re eligible, sign up, because like Matthew Lesko used to say, “the ones who know about the programs are the ones that get the money!”