Absolutely true. As one of my other consulting businesses, I run a number of high school tournaments. In that line of business, I hire judges on a weekly basis, but often a different set every week. I keep meticulous records, since I record my payments to those judges as a business expense. I don't have to send 1099s to many of them, but I did have a college send a late 1099 to me one year, and the IRS would have billed me for the full amount, except I was able to instantly produce my spreadsheet showing every judge payment, thus reducing my tax burden to nothing, since I had already reported my fee from that tournament.