The rules are confusing me for whether this is only needed for hiring an individual independent contractor or if it's needed for hiring another business as well. 

My long term goal at the end of my investment journey is to enjoy the journey, play the long game, and  have enough income from my investments that keeps my family well and financially independent.

They may even start an actual audit of your tax return.What about private lenders then?

We are highly active in the areas of Independence, Raytown, Blue Summit, Sugar Creek, Lee's Summit, Grandview, Blue Springs, specific areas within the city, etc.We typically like to start with an initial phone call to discuss your investment goals/experiences, answer any questions you have, and tell you all about what our company has to offer.

It falls under the automatic consent procedures, so it does not need approval - it could still be audited though 3.

My thought is that if the IRS audits me, I'm perfectly capable of showing how "Joe Smith" paid my venmo $1K, I transferred it to my personal account, I also have a lease agreement identifying that $1K and Joe Smith's name.

True Joel, but like pulling teeth to get Syndicators to show you their track record, ie actual total returns with breakdowns of distributions + capital appreciation + principal paydown etc, and SEC so loosely governs Real Estate that it's the only investment category that doesn't require standardized return metrics like the 30=day SEC yield on any fixed income product is mandatory, or audited GAAP accounting standards on finacials from public stocks/Reits etc Real estate seems to be still a bit more un-regulated "Wild Wild West" than other parts of the investment economy, but i guess hence the much better returns i've had in real estate, risk = rewards This is why the good sponsors get have audited financials and have a third party verify their track record.

In the future, always get an independent third party opinion. 

The filthy rich do that in remote areas and go through a company that is very experienced in doing that because it is also one of the most audited things by the IRS.

To minimize audit risk, it’s advisable to choose “Other interest” instead of “Mortgage interest” when reporting.Part 2: Forms 1099-INT from Investors to Private LendersForms 1099-INT Explained: Similar to the interest earned on savings accounts, Form 1099-INT outlines the interest that must be included in taxable income.