<i>We?re too big. There?s too many. We don?t do it.? ?</i><p>
Yeah, there was too much paperwork involved for a company like Countrywide which isn't familiar with paperwork. I am trying to imagine myself, representing Countrywide, sitting accross during a formal review, and telling the senior IRS agent, "My client is too big and has too many brokers, and my client decided not to issue 1099s". I am also trying to imagine what type of fines and penalties the IRS would assess if this were true. There are IRS reviewers who are somewhat understanding when a carpenter uses the paperwork excuse, but I doubt if Countrywide will find any such sympathys.<p>
What will be fascinating will be to see what Countrywide claimed as commission expenses and how it matches to what the brokers claimed as income. By not issuing 1099s, Countrywide pretty much invited the brokers to get creative with claimed income and guaranteed they will not match Countrywide's expenses. How can they be so stupid? Like there is no paper trail?