I've written about this before but my loan problem has taken a new twist.
2 years ago I loaned a friend 55K to get his business started. He has been paying regularly until this month when I received a certified letter stating he is putting all my
Monthly payments in a separate trust account until I give him my ss#. He needs to 1099 me on the interest he paid. I had previously not done this being I don't trust him with my vital information. This guy broke into my home and read all my private emails. We were dating at the time and he was trying to catch me in something. Needless to say, I broke up with him because of this. His behavior is at times confusing and bizarre.
This fellow also emailed my CPA telling him he needed my SS#. My CPA told me not to give it to him but rather I should can claim the interest I received without divulging anything. I emailed this guy and told him I wanted his CPAs phone number and now he refuses to answer me. My emails are deleted before being read.
Is it legal to hold my payments hostage like this? The promissory note HE drew up states payments are to be mailed to me at my home address and if this should go to court for default, he is to pay attorneys fees.
What do I do now?

Wait a second, he is paying you on the loan, so you should be supplying him a copy of his annual payments, not him giving you a 1099. I don't see any reason he has to furnish you one, you have to supply him notice of how much interest was paid during the year, not him tell you.