Paypal and other credit card merchant processors are not required to issue 1099’s to payees, unless they received $20,000+ AND had more than 200 transactions… Whereas any other payer is required to issue a 1099 to a payee if they paid them $600 in the ordinary course of business. This DOES NOT change the fact that you are still required to report all this income as a payee.
Loophole? Sounds a little bizarre??
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