In a sign the Internal Revenue Service could crack down on workers with large demands. The agency has been authorized by a federal court to collect information from JustAnswer LLC about U.S. taxpayers. who received compensation through the said platform
Dolly Gee, California Federal District Court Judge Approved the agency's request for so-called John Doe subpoenas, which seek information on groups of people the government has not yet identified by name or other means. The subpoena seeks information on people who received $5,000 or more from answering questions on the JustAnswer platform in one year from 2017 to 2020.
“The gigantic economy has grown in recent years. and therefore Concerns about tax compliance issues are therefore increasing,” said Deputy Assistant Attorney General David Hubbert at the Justice Department. Press release– “This John Doe subpoena demonstrates that, working with the IRS, we will use every tool at our disposal to ensure that no U.S. taxpayer How to earn income? They report and pay taxes appropriately. Those who choose to lead the gig economy must be aware of and comply with all of their tax obligations.”
JustAnswer did not immediately respond to a request for comment.
Accurate information on gig workers is hard to find due to the decentralized and diverse nature of their work, but Survey of workers has shown that many participants in the gig economy earn less than the minimum wage in the states where they work.
While the DOJ and IRS have not specified whether they are seeking John Doe subpoenas for other platforms, the press release has name-checked several other gig platforms, including Airbnb, Uber, Lyft, DoorDash, and Etsy.
in november The Revenue Department has issued a new advice To teach large-scale work platforms by instructing them to report information to the agency on taxpayers with incomes of more than $5,000 in 2024, more than $2,500 in 2025, more than $600 in 2026, and beyond.
Previously, gig platforms were required to report information to the IRS for workers who earned more than $20,000 and completed at least 200 transactions. The new criteria are designed to allow gig workers to avoid paying taxes on their income. their own more difficult
“Like any other American. that receive income through traditional methods US taxpayers that receive income from digital and other platforms The gig economy needs to pay its fair share of taxes,” said Danny Werfel, Commissioner of the US Internal Revenue Service. said in a statement “The world is getting smaller for tax fraud. And we will work with our partners to vigorously enforce the country's tax laws.”