Buying on TRF and IRS reporting

[looking to buy]

So, I have been lead to believe by my bookkeeper that any watches I buy on TRF, if I buy them from a US person, must have an IRS 1099 sent to them (the seller). I recently purchased a watch here from a very respected TRF seller. ( I will not mention his name now) He told me he would give me his employer identification number (payment went to a corporation) after the sale was completed.

I have sent him numerous emails and even tried to buy another watch from him and he will no longer respond to me. He has not sent the EIN as he promised. From what I understand, the IRS is making it mandatory that all purchases must have a 1099 sent to the seller, if the price exceeds $600. If I do not send one then I get hit with a monthly penalty for every month I am late. Or, I could send a notice to the IRS that the seller failed to provide it to me which could get him in trouble.

Now, it is true that this is only an issue if one of us gets audited but the penalty is such that I am not willing to take the chance. If he gets audited and I did not send it, then I get penalized. If I get audited and did not send it then I get penalized and he gets audited.

Do any of you tax guys know the rule? I understand that things tightened up a lot as of this year and that this is being closely monitored by them. I do not want to make a big deal out of it if it is different than what I understand it to be. But, I also do not want to get hit with big fines for failure to comply.

I know we all hate the tax guys, but I have been hit with some good sized fines in the past for failure to comply with things I did not know I had to comply with.

So if some of you tax guys could weigh in I would appeciate any advice.