I was reading that we are suppose to 1099 ALL of the selling agents. When did this start? Most have NEVER done this. And if we are to do this do we get their tax I.D. numbers prior to close. There is always something new for us SMALL business owners. Whats up with this? Any feedback???

That was confusing to me also. We don't actually pay any other brokers. Commission checks to other brokers are paid by the closing agent directly to the broker and any referral fees paid out are paid out of closing also. Those funds never actually hit our bank account.
I know in some markets the listing company collects the entire commission and then pays the co-broke. In that case, a 1099 tracks the in and out of the money so the listing company isn't on the hook for taxes.

I agree, I think it is only if you collect the money and pay.

Yeah I double checked with the IRS. It's whoever pays out that has to do the 1099. So for instance I have some agents who are paid by the attorney at closing and for those I don't have to 1099.

Usually when an agent joins your brokerage just make them fill out a w-9 as part of the sign up package. They will either put a tax id or their social security and then sign they are not subject to backup withholding.

I did use the www.filetaxes.com and it worked great.