The law does not actually say a 1099 has to be filed or that a credit card can be used instead. It was the IRS that made the rule about 1099s and credit cards in an effort to enforce the law and presumably not be buried in paper.  The penalties for a business which neglect to submit multiple 1099s for $600+ purchases or payments can add up fast and may be as much as $250,000.  http://www.startupcompanylawblog...