The gig economy has become a significant part of the modern workforce, with many individuals turning to platforms like JustAnswer to earn income by answering questions and providing services. However, as the gig economy has grown, so too have concerns about tax compliance issues. In a recent development, the Internal Revenue Service (IRS) has received authorization from a federal court to gather information from JustAnswer LLC about U.S. taxpayers who received compensation through the platform.
California federal District Court Judge Dolly Gee approved the agency’s request for a John Doe summons, which allows the IRS to seek information about individuals whom the government has not already identified by name or other means. The summons specifically targets individuals who received $5,000 or more for answering questions on the JustAnswer platform in any one year from 2017 through 2020. This move signals a potential crackdown on gig workers who may not be properly reporting their income and paying taxes.
Deputy Assistant Attorney General David Hubbert emphasized the importance of tax compliance in the gig economy, stating that the IRS will use all available tools to ensure that taxpayers are reporting their income accurately. The John Doe summons serves as a warning to gig workers that they must be aware of and abide by their tax obligations, regardless of how they earn income.
While JustAnswer has not yet commented on the situation, the IRS’s actions may have broader implications for other gig-working platforms. The press release mentioned several other platforms, including Airbnb, Uber, Lyft, DoorDash, and Etsy, suggesting that similar measures could be taken in the future.
In November, the IRS issued new guidance to gig work platforms, instructing them to report information to the agency about taxpayers who earned more than $5,000 in 2024, more than $2,500 in 2025, and more than $600 in 2026 and beyond. These new thresholds are designed to make it more difficult for gig workers to evade taxes on their income, as platforms were previously only required to report information for workers who earned more than $20,000 and completed at least 200 transactions.
IRS Commissioner Danny Werfel emphasized the importance of all taxpayers, including those in the gig economy, paying their fair share of taxes. The increased scrutiny on gig workers reflects a broader trend of cracking down on tax evasion and ensuring that individuals are fulfilling their tax obligations. As the gig economy continues to evolve, it is essential for workers to stay informed about their tax responsibilities and comply with IRS regulations to avoid potential legal consequences.
