The IRS signals a coming crackdown on gig workers

In a sign that the Internal Revenue Service may crack down on gig workers, the agency received permission from a federal court to collect information from JustAnswer LLC about any US taxpayers who received compensation through the platform.

California Federal District Court Judge Dolly Gee granted the agency’s request for what is known as a John Doe subpoena, which seeks information about a group of individuals the government has not already identified by name or other means. The subpoena seeks information about people who were paid $5,000 or more for answering questions on the JustAnswer platform in any year from 2017 through 2020.

“The gig economy has grown in recent years, and with it has increased concern over tax compliance issues,” said David Hubert, deputy assistant attorney general at the Department of Justice. press release. “This John Doe recall makes clear that by working with the IRS, we will use all the tools at our disposal to ensure that no matter how American taxpayers earn income, they correctly report it and pay their taxes. Those who choose to be in Vanguards of the gig economy need to be aware of and adhere to all their tax obligations.

JustAnswer did not immediately respond to a request for comment.

Accurate data on freelancers is difficult to obtain due to the decentralized and diverse nature of work. but Surveys of workers showed that many participants in the gig economy earn less than the minimum wage in the state in which they work.

Although the Department of Justice and the IRS did not indicate that they were seeking a John Doe recall for other platforms, the press release did name-check several other labor platforms, including Airbnb, Uber, Lyft, DoorDash, and Etsy.

In November, the IRS issued new guidance To trouble job platforms and instruct them to submit 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 later.

Previously, gig platforms were only required to report information to the IRS for workers who earned more than $20,000 and completed at least 200 transactions. The new thresholds are designed to make it harder for gig workers to avoid paying taxes on their income.

“Like their fellow Americans who earn income through traditional means, American taxpayers who earn income from the digital and other platforms that make up the gig economy need to pay their fair share of taxes,” IRS Commissioner Danny Werfel said in a statement. “The world is getting smaller for tax evaders, and we will work collaboratively with our partners to aggressively enforce the nation’s tax laws.”