@markporter wrote:
I guess my takeaway is I need to discuss with a CPA and/or the IRS.
There is really nothing to discuss. The answers above are correct.
Yes, big businesses need to do this also. That is part of being a business. If you pay somebody for services, either an employee or an Independent Contractor, you need to follow the rules and report things if necessary (W-2s for employees, 1099s for Independent Contractors).
Credit cards and certain other electronic payments follow their own reporting rules, and are required to issue 1099-Ks if they pay a certain amount (200 transactions or $20,000). Because credit cards fall under their own rules, payments by credit cards are exempt from the other rules that you would need to issue a 1099.
