Do I issue 1099 - MISC when buying items over $600?
I have a small business buying and selling scrap metal.
Most of the scrap I buy is under $600 so I dont need to do anything special. However, several times a year, I have big transactions where I buy $2000 to $8000 worth of scrap metal from one person. I pay them cash, its standard in our business because lots of scamsters issue bouncing checks.
I do issue these big them my standard "receiving receipt" even if i'm the one buying it from them, for record keeping's sake, and have them sign "received" for the cash, and it lists what items i bought from them.
Do I have to issue them a 1099 or something else? I heard 1099 is not for merchandise. But is it OK for IRS to see that I pay people over $600/year to buy stuff without issuing any 1099? The people I buy it from are not businesses, just personal people who are also scrap collectors.