The Internal Revenue Code requires businesses to report payments of $600 or more for services on form 1099. They actually want you to send them a Form W-9 that has your information on it so that if they end up paying you that much during the year, they can issue a 1099 to you. It's no big deal unless you don't report your income. For a number of reasons, most businesses receive more income than is reported on 1099s. But the IRS checks to see if you report at least as much for your business as you received in 1099s. If so, then they move on.