The issue is misstated
Reader comment on: IRS Audits of Small Businesses
Submitted by Lyle (United States), Feb 23, 2010 08:24
If you have copies of the statements from the processor showing amounts payees and times, then you could show a match between the 1099 in amount and source. That should do the deal. This is targeted at the E-Bay seller who runs a significant business but does not get 1099 because the seller deals with people. The irs wants to catch this. I don't think the statements from the processor are 1099s as such just records of payments made. If your 1099 total is higher than the payments received there should be no problem.
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