IRS Going After Nickles & Dimes By Lowering Reporting Threshold From $20,000 To $600

November 29, 2022
IRS Going After Nickles & Dimes By Lowering Reporting Threshold From $20,000 To $600

If you are a Gig Worker, Side Hustler, Contractor/Freelancer or Self-Employed the reporting and documentation requirements just exploded.

They are going after your Nickels & Dimes on both revenue and expenses.

We’ve been told by multiple “experts” in the field of tax, taxable benefits, income tax (personal & corporate) that the tax authorities wouldn’t go after Nickels & Dimes….

“mobilityView you are wrong and we are the experts on this topic.”

They don’t like it when we provide document after document to show that the “supposed experts” are wrong.

They get really annoyed when we present to them overwhelming evidence from exceptionally credible 3rd party sources (not us) not just of the tax code changes but also of the enforcement of said changes.

Article Source On Nickels & Dimes :

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We are way ahead of the curve vs. the “supposed experts” and here is the evidence to document :

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

“As 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..."

H&R 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 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.

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 and services.”

Page 581 : “Like all expenses, business expenses for use of mobility devices and networks need to be accumulated, categorized, and recorded.

Our Mobile Cost Management (MCM) Solution :

  1. 70% More cost effective than a Stipend for Smartphone Reimbursement
  2. 75% More cost effective than a Company provided phone
  3. Keeps companies labour law and tax law compliant
  4. Protects companies against class action lawsuits by their employees for failure to reimburse or adequately reimburse
  5. Keeps employees reimbursed & happy in a tax efficient lower cost way than a stipend or company provided phone
  6. 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

30 Second Explainer Videos On How We Lower Costs For Employees/Gig Workers & Employers :

Employee WFH / BYOD Reimbursement :
Employer WFH / BYOD Cost Savings :

Employee & Employer Cost Sharing For Win/Win :
Carrying 2 Phones? Save $1,500 Annually On Cell Bills :

Tax Deduction Changes For US Gig Workers :
Tax Deduction Changes For Canadian Gig Workers :
Tax Deduction Changes For Australian Gig Workers :

Gig Worker & Employee Tax Deduction/Reimbursement For Previous Years :
Canadian Employee Tax Deduction Up To $1,000 :

Non-Canadian Employee & Gig Worker tax deduction :

Get $30 to $80 / Month Tax Free In The Form Of Reimbursement Or Tax Deduction :

Smartphone global tax trends :