I finally got round to checking out Revolut which was recommended by a friend in Ireland. This is new-ish to the US, and I don’t have much use until this pandemic is over because I’m not traveling anyway.
In reviewing the terms, it seems like the Revolut app creates a prepaid card behind the scenes. This seems similar to Netspend, Greendot, and the like. The fees are somewhat better, but I they make their money in a different way. The owner of a Revolut account doesn’t make any interest.
What are the tax reporting implications of this, if any? Does the owner need to submit a 1099 or similar. My friend probably thinks he’s getting a referral fee if I sign up (he’s a good guy), but the IRS is much more serious. Does opening accounts on prepaid cards expose you to liability if these companies don’t issue the right paperwork? I could end up trying this app and never loading it again, and forgetting.
August 01, 2020 at 09:12PM
