While not a tax expert or attorney I understand, from a company I deal with, that a 1099 has to be filed by the hiring party if the ANNUAL compensation is over $1000. Below that---nothing.

Witholding has nothing to do with this whatsoever.    I do believe, however, that house concerts can run into problems with insurance companies should there be an unfortunate accident at the place. I doubt a Homeowners policy would cover it unless there was a rider in place.

As for the Canadian performer mentioned by Sol and the sharing w/ other agencies (see above)--I doubt that the IRS is involved in that unless other issues arose that, say, FBI was interested in.

Bill Hahn