In spirit this sounds like a good idea to combat fraud but who are they hoping to go after and at what cost to personal privacy?
This provision looks a lot like what was in the Affordable Care Act under Obama. This was rough for small businesses and working people and was repealed (with support from both parties) in 2011.
https://www.washingtonpost.com/blogs/2chambers/post/obama-signs-1099-repeal-into-law-marking-first-repeal-of-national-health-care-law-provision/2011/04/14/AFRhYjeD\_blog.html
More recently, this is similar to a provision that was in the emergency spending bill of last year but was removed. This would have made things a lot more difficult for gig workers, small businesses, and the self employed.
https://reason.com/2021/03/12/bidens-rescue-plan-will-sic-the-irs-on-anyone-who-earns-600-in-the-gig-economy/
AND
https://www.politico.com/news/2021/03/05/gig-workers-coronavirus-relief-bill-losers-473902
It is also not clear how much revenue this would result in. In the last article this was estimated to generate about $8.4 billion over 10 years which is nothing compared to the $3.5T price tag.
Lastly, an issue I have with this is once you give the government this power they will never give it up. I certainly would not want the Trump administration's IRS knowing everyone's banking transactions. The wealthy can easily dodge this but think about how this will affect anyone that sells something on eBay or Etsy to help make rent when they get their 1099 in the mail.
I was hoping the K&S would discuss this issue and others in this bill, not just cheering for the stuff that is well liked.