Key Takeaways
- Gig Worker Scrutiny: A federal court in California authorized the IRS to serve a John Doe summons on JustAnswer LLC, targeting gig workers who may have underreported income between 2017 and 2020.
- Increasing State Revenue Efforts: Governor Gavin Newsom’s administration is pushing for additional taxes to address California’s ongoing budgetary concerns, raising controversy among gig workers who rely on side income for financial survival.
- Counter Argument: Critics argue this action could disproportionately impact individuals who rely on gig work as a secondary source of income, potentially adding to their financial burdens.
By Samuel A. Lopez – USA Herald
(LOS ANGELES, CALIFORNIA) – Earlier this week, a federal court in California authorized the Internal Revenue Service (IRS) to serve a John Doe summons on JustAnswer LLC—a digital platform that pays professionals, ranging from doctors, to tax experts, to answer user-submitted questions. The IRS is investigating whether individuals who provided these expert answers failed to report all their income from 2017 to 2020.
The court order, signed by U.S. District Judge Dolly M. Gee, does not accuse JustAnswer itself of wrongdoing. Rather, the IRS aims to collect information on anonymous taxpayers (the “John Does”) who may not have fulfilled their federal tax obligations. You can read the official Court Order Here.
According to Deputy Assistant Attorney General David Hubbert of the Justice Department’s Tax Division, “This John Doe summons demonstrates that working with the IRS we will use all the tools available to us to ensure that no matter how U.S. taxpayers earn income, they are properly reporting it and paying their taxes. Those who choose to be on the forefront of the gig economy must be aware of, and abide by, all their tax obligations.”
