I would not recommend issuing a 1099 in the name of someone that did not do the work for a number of reasons, not least of which is that it could be problematic to you in the case of an audit by the IRS or Department of Labor. Likewise, if you give her a gift (she did not do any work after all), why would you still not owe the person that did the work? I see very little upside for you, but a fair amount of risk. There are ways to accomplish this, however, without putting yourself at risk such as paying his company. Nevertheless, everything needs to be done pursuant to the independent contractor agreement.