I still view it the same way I did before.
As for your last point about the 1099s ...
(a) Claiming QBI without the Safe Harbor means you ARE claiming it is "Trade or Business" (section 162), right?
(b) 1099s are required for a "Trade or Business", right? So if you are not filing them, you are implying it is NOT a "Trade or Business", right?
So a history of not filing 1099s is a history of claiming it is NOT a Trade or Business. If you suddenly claim QBI, then the auditor would need to ask "What changed? Why is this NOW a business when you've been claiming it is NOT a business for years?". If there wasn't a change in circumstances, the result would likely be either denying QBI or charging large penalties on unfiled 1099s.
