January 9, 2020

IRS Rebrands Shared Economy Tax Center

peter alizio calendar icon at 12:55 PM

IRS Launches Gig Economy Tax Center 

Today, I received an email from the IRS (IRS Newswire - January 9, 2020). The email discusses the launch of a new Gig Economy Tax Center on IRS.gov to help inform individuals who earn money performing "gigs" or through the "shared economy" of their tax obligations. 

The IRS previously had a Shared Economy Tax Center which appears to have been rebranded into the new Gig Economy Tax Center.

It is my belief that the IRS will start paying special attention to ride-sharing and temporary room or housing rentals (airbnb) going forward.
“Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line.” - IRS Commissioner Chuck Rettig 

The Gig Economy Tax Center is comprised of two sections:

Section for Gig Workers  

Information specifically for individuals that have revenue from gig work. These are taxpayers who will probably receive one ore more IRS 1099-MISC forms and file a Schedule C income tax return.  The "Gig Worker" will find information about tax forms, keeping records, deducting expenses, and filing and paying taxes here.

What is Gig Work?

Gig work is a certain activity you do to earn income, often through an app or website (digital platform), like:

  • Drive a car for booked rides or deliveries
  • Rent out property or part of it
  • Run errands or complete tasks
  • Sell goods online
  • Rent equipment
  • Provide creative or professional services
  • Provide other temporary, on-demand or freelance work

Note: This list does not include all types of gig work.

Section for Digital Platforms 

Information for businesses that operate digital platforms, marketplaces, or businesses in the gig economy. These businesses can learn about classifying workers, reporting payments, paying and filing taxes here.  

What are Digital Platforms?

Digital platforms are businesses that match workers' services or goods with customers via apps or websites. This includes businesses that provide access to:

  • Ridesharing services
  • Delivery services
  • Crafts and handmade item marketplaces
  • On-demand labor and repair services
  • Property and space rentals

Note: This list does not include all types of digital platforms.

The Gig Economy Tax Center will be a good resource for taxpayers participating in the sharing economy.  However, if you still have tax questions feel free to contact us.