As a "Goodwill gesture", VW is giving me a $1000 gift card for selling me a diesel with tampered emissions back in 2014. According to their FAQ, they will not issue a 1099, but says that I should consult a tax adviser.
I consider this to be a reduction in basis, which is a moot point as the car is probably worth far less than my basis at this point. Out of curiosity: Under what circumstances would this be a taxable event?