![]() What do the tougher reporting rules entail?įreelancers, gig workers and self-proprietors are supposed to report all of their job income and pay taxes on it, but non-compliance is a problem. ![]() Hence, the goal of the new rules: Prod more people to declare all of their income. Self-employed individuals and sole proprietors “represent the largest share of the individual underreporting tax gap,” the Government Accountability Office said. Households and businesses collectively pay only about 85% of the taxes they owe, with the difference known as the tax gap. It's no secret the government has run deficits for years, and the shortfall is projected to grow. The policies are designed to make sure that job income is reported more fully. ![]() The new rules were delayed for the 2022 tax year but will resume unless Congress or the IRS make further modifications. That means millions of taxpayers could face tougher income-reporting requirements on payments made through third-party platforms such as Venmo, PayPal or Cash App. The federal government needs to raise more money amid chronic deficits, so it's no wonder Congress and the IRS are putting gig jobs and other self-employment work under the microscope.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |