Citibank Improperly Taxed Airline Miles Perk: Suit

Law360, New York (February 17, 2012, 4:07 PM EST) -- Two Citibank NA customers launched a putative class action against the bank on Tuesday, claiming it offers airline frequent flier miles to lure consumers into opening accounts with Citibank, but doesn't tell them that they will have to pay taxes on those miles.

According to the complaint filed in New York federal court, Citibank regularly offers consumers 40,000 American Airlines miles if they open checking and savings accounts with the bank, but doesn't inform them that it will file a 1099 tax form with the Internal...
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Case Information

Case Title

Hirsch et al v. Citibank, N.A.

Case Number



New York Southern

Nature of Suit

Contract: Other


Deborah A. Batts

Date Filed

February 14, 2012


Government Agencies

UK Financial Services

UK Financial Services

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