Authored by Naveen Athrappully via The Epoch Times (emphasis ours),
A new IRS tax on gig workers would result in additional documentation that will create confusion among individual taxpayers as the agency does not have “centralized leadership” to deal with the expansion, according to a watchdog.
Starting this year, a new IRS rule required that third-party payment networks like PayPal, Venmo, Amazon, and Square issue Form 1099-K when a user receives more than $600 in gross sales from goods and services transactions in a single year. Earlier, the threshold of gross sales was over $20,000.
As a result, many taxpayers who never received Form 1099-Ks in the past will receive them this year, according to a Nov. 15 report by the U.S. Government Accountability Office (GAO). This could “exacerbate confusion among some taxpayers, such as gig workers, who may not understand the taxability of their payments and taxes owed.”
“For example, some of these taxpayers may not know how to calculate profit or loss and may not understand the information reported on the form….
Read the full article here