WRONG. if it is to a partner and reported on the k-1 as guaranteed payment (which it should) then issuing a 1099 will result in double reporting the income and create tax problems for the recipient. the income will be picked up through the k-1 and the IRS will have no way of knowing that the 1099 is for the same thing and thus will send a notice to the taxpayer for the "unreported" income. it could even result in the partner being audited. Maybe even the partnership itself.
if it's not to a partner then the IRS says a 1099 should be issued to certain recipients.
From 1099-MISC instructions:
Form 1099-MISC, Miscellaneous Income, for each
person in the course of your business to whom you have paid
the following during the year:
• At least $10 in royalties (see the instructions for box 2) or
broker payments in lieu of dividends or tax-exempt interest
(see the instructions for box 8).
• At least $600 in:
1. Rents (box 1);
2. Prizes and awards (box 3);
3. Other income payments (box 3);
4. Generally, the cash paid from a notional principal
contract to an individual, partnership, or estate (box 3);
5. Any fishing boat proceeds (box 5);
6. Medical and health care payments (box 6);
7. Crop insurance proceeds (box 9);
8. Payments to an attorney (box 10) (see Payments to
attorneys, later);
9. Section 409A deferrals (box 12); or
10. Nonqualified deferred compensation (box 14).
You must also file Form 1099-MISC for each person from
whom you have withheld any federal income tax (report in
box 4) under the backup withholding rules regardless of the
amount of the payment.
