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...
True, as a self employed carpenter I sometimes get a 1099 for anything over $600 bucks , but it is always if I work for a company. I never got one from a private person. though. If that was law , it would be a pain. I just write an invoice , keep the copy and claim it at the end of the year, even cash. I will never get in trouble, cause I have more claimed than deposited cause I claim cash.
