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smallbiztrends.com]
I was vaguely aware of this for the last couple of years but never translated it into what it meant for us here until I had a tax client who pays all of her subcontractors through Paypal and asked me to 1099 them and I realized we didn't have to.
If an MSC pays us through Paypal they *do not have to 1099 us even if we make $600 or more*. They *can* 1099 us if they want, but they don't have to.
So if you're expecting a 1099 from someone who pays through Paypal and it never shows up -- this is why.
You have to report the income anyway. But you won't have the piece of paper telling you how much you got.
Time to build a bigger bridge.