January 22, 2023
Intuit Reported In 2017 That 34% Of The Entire US Labour Force Was In The Gig Economy & Expected To Be 43% By 2020
Some of the world's most prestigious companies that are domain experts in the field started to call out the importance of the Gig Economy to the US Economy as early as 2017.
"The gig economy...is now estimated to be about 34% of the workforce and expected to be 43% by the year 2020," Intuit CEO Brad Smith said Wednesday on an earnings call. "We think self-employed [work] has a lot of opportunity for growth as we look ahead."
“McKinsey found that there are roughly 68 million freelancers in the US.”
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Internal Revenue Service (IRS) Has Changed Tax Deduction Requirements For Cellphones
Just Like Mileage For Your Car ... Only The Documented Business Smartphone Usage Can Be Deducted From Your Gig Income
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Get Up To A $1,000 / Year Tax Deduction By Automating Business (Gig) vs. Personal Usage
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Gig Workers Are Being Targeted By The IRS For Tax Deduction Analysis & Audit
“A last-minute insert by Democrats looking to offset the cost of their coronavirus aid package would send tax collectors into the gig economy, eventually costing Uber and DoorDash drivers, Airbnb hosts and others about $1 billion annually,” Roll Call reports.
IRS & Tax Courts Are Denying The Ability To Claim/Deduct Personal Usage
for the cell phone and internet, Judge Panuthos really wanted to help
Ms. Armstrong ..., but he was unable to do that because she could not
give him any basis for allocating what amounts of the total cell phone
and internet bills
were for work and what amounts were for personal use..."
Block & Intuit (TurboTax) Say Only The Documented &
Substantiated Business/Gig Usage Of Smartphone & Wireless Plan May
Be Claimed As A Deduction
Direct quote from Intuit/Turbo Tax on their tax advisory note dated July 1st, 2021 : "If you have an expense that is both personal and business (Smartphone) then you need to allocate it between the two."
Direct quote from H&R Block "When you use a personal cell phone for business, the regular monthly expense will not qualify as a deduction. To deduct the expense, you would need to calculate the business-use percentage of the mobile phone on a month-by-month basis. Adequate documentation could include a log with these: ... Notes that indicate whether each call was personal or business Business purpose of each call"
The Likelihood Of An Audit Has Doubled For The Average American
Nearly half of the audits would impact families earning less than $75,000, while roughly one-quarter of the audits would affect Americans earning up to $25,000 per year... the plan will also result in 800,000 more federal tax liens against taxpayer property, including homes and vehicles.
The IRS Has Hired 87,000 New Auditors Targeting Self Employed & Small Business Owners
The [Washington] Post reports the IRS expects a much lower return on all
those “rich” people they claim they are going to audit with those 87,000 new
agents, which is an eightfold increase in their budget….
80% Of New IRS Revenue Will Come From Small Businesses Earning Under $200,000
Quote #1 : “The IRS will have to target small and medium businesses because they won’t fight back,” Joe Hinchman, executive vice president at National Taxpayers Union Foundation, told The Post.
Quote #2 : In fact, going after the lower and middle class can actually be more lucrative for IRS auditors than trying to get more money from the wealthy. “The rich have their lawyers and fight it — that’s why the poor are easier to go after,” Hinchman adds.
Quote #3 : Even if small business owners get everything right, they may still be faced with a headache since part of the IRS expansion will involve sending out more notices and letters to businesses, Bunn adds. For individual contractors or small businesses, an IRS letter that they owe more money or made an error on their taxes can put them underwater.
IRS Going After Nickles & Dimes By Lowering Reporting Threshold From $20,000 To $600
Quote #1 : "Before this year, the threshold for filing a Form 1099-K report was at least 200 transactions totaling an aggregate of at least $20,000.
Quote #2 : "When Congress passed the American Rescue Plan Act of 2021, it included a provision that reduced the reporting threshold to a single transaction over $600."
Quote #3 : "President Biden and the Democratic Party have insisted that Americans earning less than $400,000 annually would not have to pay a cent more in taxes."
Quote #4 : But the Joint Committee on Taxation disputes this, saying that between 4% and 9% of the money collected will come from businesses that earn above $500,000 a year.
And Department Of Labour Partner To Specifically Target Gig Workers To
Determine If They Are Actually Employees For Payroll & Employee Tax
Quote : “To share information between the SB/SE and WHD to assist in the identification of emerging and ongoing employment tax compliance issues related to misclassification, but its practical effect is to streamline the process for investigating and penalizing businesses that allegedly misclassify their employees as independent contractors. This is the latest memorandum of understanding between federal agencies focusing on perceived widespread worker misclassification in the labor market."
mobilityView Featured By Forbes For New Smartphone Taxation Laws That Went Into Affect In USA & Canada
"To remain compliant with the IRS's cellphone policy, you should document business and personal usage for every call, text message and packet of data."
mobilityView Featured By The #1 Tax Planning Expert (Front Cover Of His Book) As A Necessary Solution For Gig Workers
"I recommend a U.S. patented solution from mobilityView Inc. which
automates the separation of business vs. personal use of mobile devices
Page 581 : “Like all expenses, business expenses for use of mobility
devices and networks need to be accumulated, categorized, and recorded.
Time Machine App & Mobile Cost Management App Are Fully Tax Deductible
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Our Mobile Cost Management (MCM) Solution :
- 70% More cost effective than a Stipend for Smartphone Reimbursement
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- Keeps companies labour law and tax law compliant
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- Keeps employees reimbursed & happy in a tax efficient lower cost way than a stipend or company provided phone
- Aligns your smartphone reimbursement policy to your mileage reimbursement policy. Tax authorities globally have required a mileage book for years and now require a "mileage book for connectivity costs" denoting the business vs. personal usage & cost
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