My son said rule's been around forever - has to do with 'services' rendered and some corporate transactions... The IRS is mainly concerned with businesses like private contractors - and others that I can't remember now...
For example- the farm I work for part-time had to send a 1099 to a private citizen for cement work that was done at the farm.. The citizen is a union cement worker for a large company and occasionally does some weekend/side jobs for locals; like garage pouring/sidewalks etc...
Been around forever However the reporting rules and thresholds are changing.
