My Bank requires contractor for work. does contractor need 1099?

[Dave H.]

Its an insurance job for 10k. Bank wants a licensed contractor to do the work. Does the contractor have to fill out a 1099? He's a friend and he would prefer not to. Any downside to not doing the 1099? Thanks. 

[James Wise]

Originally posted by @Dave H.:

Its an insurance job for 10k. Bank wants a licensed contractor to do the work. Does the contractor have to fill out a 1099? He's a friend and he would prefer not to. Any downside to not doing the 1099? Thanks. 

 The contractor doesn't want to fill out a 1099 because he wants to do this "under the table" Technically speaking, that is tax evasion, so there's that downside.