If you are a professional lender in the USA, and you get property because of a foreclosure, you need to fill one out.

Basically, just like everything else with SovCits, someone misunderstood how something works and was very loud about their wrong conclusions. Because it sounded smart, and also reinforced the belief systems of the group, people don't look into what it actually says and treat it like magic.

See also ALL CAPS names on legal documents and forms.

A 1099 is an irs form to report income from all sorts of random places. Gambling winnings, forgiven debt, contract work, receiving stock, etc. There are special sub forms for certain types of income, 1099a is about taking property used as collateral for a loan in place of payment.

SovCits decided this form can be magical payment for things while keeping the thing.