"1099 Misinformation"

"It's best to comply than to pretend to be unaware or I didn't know that"

1099s are just paperwork -- they do not in any way affect the amount of tax people owe (it just reduces the number of people committing tax fraud, intentionally or not).

An IRS 1099 form is "used to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Social Security Administration Form W-2 is used instead

The W-2 and the 1099 are the two main forms that the IRS uses to document and track taxable transactions. The purpose of that tracking is to assess the proper government tithe for them.

Congress in 2006 increased the amount of the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.

Penalties. One of the big concerns is penalties. If you fail to issue the forms, the IRS can assess penalties. Most penalties are modest, $50 to $100 per form. But if you fail to issue hundreds of forms, penalties and fines can add up. Plus, the IRS can even assess an "intentional disregard" penalty of 10% of the amount that should have been reported on a Form 1099.

Unless tax withholdings are authorized, independent contractors should receive full payment for their services. If fees are owed to the association, the independent contractor is obligated to pay the association those fees. Bylaws and/or policy should state the dates due and fee for late payment.