The Internal Revenue Service (IRS) this week issued a notice to “gig economy” service workers and those who receive a foreign source of income that they have to report potential tax obligations on income.
An IRS release issued Mar. 1 says that taxpayers have to report income from the gig economy on their tax returns, “even if the income is from part-time, temporary, or side work; paid in any form, including cash, property, goods or digital assets; not reported on an information return form like a Form 1099-K, 1099-MISC, W-2, or other income statement.”
The gig economy is defined as activity where people earn income from providing on-demand goods, services, or work—and it’s often via an online platform such as an app or a website like Instacart, Lyft, DoorDash, or Uber….