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That's the tip of the regulatory nightmare called the IRS.

Any payments greater than $600 for services require the filing of a 1099-MISC by payor reporting to the IRS the payee information as well.

The IRS wants all the information - the ACA (Obamacare) originally required all annual payments to anyone for anything greater than $600 be reported. That provision was removed from the law before it took effect.

See all the great variants of 1099 on Wikipedia. https://en.m.wikipedia.org/wiki/Form_1099

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