It can take months to get a theme reviewed and approved for the WordPress theme directory so I think the Envato review team is doing a pretty awesome work in comparison.
And I hardly think the reviewers are coming up with “arguments”. They’re simply finding additional things to fix and it’s probably for the better those issues are addressed before your buyers have to deal with them.
Do you mean Envato or the theme author? If Envato then:https://help.market.envato.com/hc/en-us/requests/new
1099 is required for U.S. businesses. Envato is Australian.
Have a look at our latest theme. Sass files available on request:http://themeforest.net/item/merch-a-woocommerce-wordpress-theme/10277209