Los Angeles Times today following up on its previous column about Citibank issuing 1099 forms this year for miles awarded for opening new accounts:
IRS clarifies its stand on whether airline miles are taxable - latimes.com
It says it has pressed the IRS for a decision on this, and the IRS has responded: We'll get back to you on that.
A lot of discussion about it at varying levels. So, this is a continuing controversy now, stay tuned. You might or might not end up having to report that for taxes.
City takes the position that airline miles awards for opening new account are taxable, but not awards on things like credit cards. We don't have an explanation for that, but I suspect they consider the miles or other on a credit card to be a purchase, whereas there is no purchase for the award on a new savings account.