Anyone called out by IRS for NOT filing 1099s??

[Serge S.]

I know a few investors that have never filed 1099s with contractors. They claim to either play dumb (thought it was a C-corp) or just never file. One guy has never filed in over 10 years and never a peep from the IRS. I'm wondering what real life experience people have had with the IRS? Anyone get called out, fines, etc?

[Steve Babiak]

I had filed 1099 that was lacking the tax ID of the contractor, due to failure to get it. IRS sends a letter saying don't do that again, and that you must send a letter to that contractor telling them if they do future business with you that you must have that tax ID or be subject to backup witholding.

So it does get checked by somebody at the IRS if you actually issue a 1099.