I got an iPod shuffle once for opening an account at a small local bank. I tried to play if off like I actually wanted an account there, but I didn't
Yes, they sent me a 1099, and I did include it on my taxes.
At my bank they were giving away 4 free movie tickets for every new account. That's over $40 in tickets! We did it for nearly a year before we got audited and had to fire half the staff and stop doing promotions :/