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Sharing Economy Encouraged to Share With and By the IRS

sharing economy

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If you’ve ever been picked up by an Uber driver or know someone who’s rented a room through Airbnb, then you are aware of the ‘sharing economy.’

In the past few years, the “sharing economy” has become a targeted focal point for the IRS. Needless to say, they really want their “fair share” of this rapidly growing business segment.

Necessity truly is the mother of invention. And, the downturn in the economy has given birth to these exciting new ways for people to make some extra money.

However, it has been nearly impossible for the IRS to track the income received by those who rent out a room through Airbnb or drive people around through services like Uber.

So, according to a recent article in the Washington Examiner, in an attempt to be perceived as helpful, the IRS launched a new “sharing economy resource center.” The article also states that the new resource center, “is meant to help Uber drivers, those who use online services to help rent out rooms for a few days at a time, and others keep track of their taxes and pay up. For people performing these services and getting paid a little bit at a time, the IRS stressed that there are new tax issues they need to understand. In years past, a person performing part-time work up to a certain point would get a 1099 form from the employer that reports on the wages paid out” In addition the article claims that, “It’s also aimed at the sharing economy companies that employ people for these micro service jobs.”

The IRS will catch up with this new segment of the economy eventually.

If you receive income from the sharing economy and want to make sure you stay compliant in the eyes of the IRS, don’t hesitate to call us.

Taxation Solutions, Inc.

12250 Queenston Blvd Suite H, Houston, TX 77095