to 1099 or not to 1099, that is the Question.

[Mark Vandzura]

I own several rental properties in New Jersey owned in two LLC's and now it's tax season. I have several venders (plumbers, electicians, HVAC, etc.) that I use for maintenance and repairs. This year my wife learned that we are supposed to send out a 1099 to any vender who we have paid over six hundred dollars in labor. We haven't done this in the past. But apparently we could get fined and receive penalties from the IRS if we get audited. Is this correct? Has anyone had any experience with 1099's? How crucial is it that I send out 1099's? Any and all advice will be greatly appreciated.