[TedDoesntTalk]

Were the payments considered income?

[jermaustin1]

Yes, but they were under the 1099 reporting limits, while they both owe taxes on them, neither were required to report it to the IRS... assuming this is the one and only time they paid each other for services rendered.

[direwolf20]

Yes, but they just didn't tell the IRS and nobody was any the wiser