By Law Does A Bank Have To Issue A 1099 To A Borrower Who Has A Commercial Mortgage Loan?

Technically, the US Treasury, which governs this area, administered through it's division the Internal Revenue Service which is responsible for tax administration, reporting, collections and compliance, requires a 1099 to be issued to any individual with over $10 in interest or $600 in miscellaneous compensation, medical or legal fees. This is for an individual and some partnerships. Corporations are not required to be reported. An LLC or limited liability company can be classified by the IRS as a corporation, partnership or non-designated entity (an individual, one person which elects not to be taxed or reported as a corporation or partnership). That is to say if a corporation or LLC is receiving the payments then the officers of the bank or issuing company based on advise they receive or have makes a decision to either issue or not issue this form 1099. Since corporations and LLC's are not individuals technically they are not required to receive this reporting. A lot of them do based on the decisions of the management it is technically not required.