The auditor, a CPA, disagreed saying to play it safe, continue 1099 to her.

My full time job is to argue with jurisdictional tax auditors.  

I am an IT Auditor for banks, so I have to frequent that site quite often to get information haha.One thing I didn't mention before that I should have is that if you know a bank exists and they are not in that list, then you don't want them as a bank.

Because in my 20 years of representing people in IRS audits, I have never had IRS auditors verify whether a tax (or any other expense, for that matter) had been assessed.

For example, we had a client who had a very straight deal and the auditor assumed she was taking personal advantage.

The young newbies in an office get all kinds of silly things to do sitting in the office when things are slow for them, some might say busy work.There is always someone who thinks they can out smart auditors and investigators, many live rent free!

I mean, I'm an auditor and an accountant.

He told me he was an auditor for uncle sam. this is red flag, that is red flag....etc. i am not trying to claim an arm and a leg. i only claim some donations which i actually have the credit card statements to proof it.

Unfortunately, I am an accountant/auditor, so I am automatically looked as a bad guy with my clients (lol) and do not what to be known as the bag guy in my real estate world. 

On the day of the audit, the IRS auditor showed up at my CPA's office at 9 am.