What is required to process a member as a 1099 according to the rules?

To process a member as a 1099, it is essential to have a comprehensive understanding of their financial transactions, which is why the requirement of 12 months of bank statements with identified deposits and expenses is critical. This documentation provides a clear picture of the member's income sources and spending habits, allowing for accurate reporting of earnings for tax purposes.

Using bank statements helps verify the legitimacy of income, ensuring that all deposits can be accounted for and categorizing expenses can clarify the net income for tax calculation. In situations where a member is considered independent for tax purposes, having clear financial records is vital for compliance with IRS regulations.

The other options, while they may have relevance in different contexts, do not provide the specific financial evidence necessary for processing a member as a 1099. Recent job history might indicate employment but doesn’t verify income precisely. Proof of home ownership isn't directly related to income reporting for tax purposes and doesn’t provide insight into the member’s financial activity. Lastly, a moral character reference does not serve an accounting or tax function and is unrelated to the required documentation for 1099 processing.