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@tax_info_seeker987 wrote:

By self employed, I was referring to people like house painters, when we pay them, for example, $1500, we don't make a 1099 for it, so what if they try to evade taxes by claiming it as a gift?


That is not your problem. 1099s are generally for trade or business reporting (i.e., reporting payments made in the ordinary course of business).

 

Paying someone (or some company) to paint your personal residence is not a payment made in the ordinary course of a business. If the house painter choses to claim that the payment is a gift, that is a potential issue with which they will have to deal if they are ever audited.