The Invention of the IRS Form 1099

Lincoln had implemented a federal income tax in 1861 to pay for the Civil War and an income tax was collected during the 1890's.

The 16th Amendment was passed in 1913 to clear constitutional issues with such a tax and the first 1040's came soon after.

The features of the income tax that we know today were quickly part of the system. This early 1918 article warns people receiving money from others that their payers would be telling the federal government about that money. The IRS Form 1099 was the culprit.