1099-MISC for LESS THAN $20,000 and FEWER THAN 200 transactions?

[railtekbelts]

I understand that as business paying for goods and services I do not need to issue 1099-MISC forms and that PayPal will issue a 1099-K for accounts that exceed these two threshholds:

• $20,000 USD in gross payment volume from sales of goods or services in a single year
• 200 payments for goods or services in the same year

But what if they do not exceed those threshholds yet have received over $600 in payments? As a business paying for services, am I still responsible for sending 1099-MISC forms if those threshholds are not met?

[railtekbelts]

I just found this article. It seems that this over $600 and less than $20,000 and 200 transaction rule has a gaping hole for possible unreported income.

http://www.forbes.com/sites/kellyphillipserb/2014/08/29/credit-cards-the-irs-form-1099-k-and-the-193...