Why is the 1099 threshold such a big deal? Regardless of whether the threshold is $10 or $10,000, in an IRS audit, you are going to have to demonstrate you accounted for the income going into your bank/Paypal/investment accounts. And, if you did not include the income on your tax return you could be in a world of hurt. If you could somehow get paid by Ebay in food or untraceable assets, it might be difficult for the IRS to track your income. But when you get the audit notice and the IRS asks to see your bank statements for the past 24 months, all of the eBay managed payment deposits are right there. If these are not reflected in your tax return, you're not going to have a good day.
The ones that should be complaining about the 1099 reporting are the entities now required to send out 1099s. That is an administrative hassle and quite expensive.
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