Originally Posted by
balima
Legally, the Man is supposed to get a cut no matter how much you make. Technically, even if you make $5 you are supposed to declare that amount on you tax return as income. Even teenage babysitters are supposed to declare their earnings. But... creating a 1099 for every person no matter how much they earn poses an incredible hardship for companies, small businesses, families with babysitters. So, $600 is the amount at which 1099's need to be created. But, the Man always wants to be paid.
Right, legally it should be reported. But AA is clearly abusing the practical knowledge that few will read about their outrageous valuations and, out of those, only a select few will report it (if any). I'm sure you're aware of that, but for those posters who might not be I felt like saying it.