Will there will be loads of independent contractors owing back taxes in the future?

4,043 Views | 43 Replies | Last: 3 yr ago by H2Ag
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Clob94
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My man-- the IRS's new stomping ground for the next few year is gonna be 18 year Olds signing NIL contracts that the university can't police.


Get ready for it.
Old Sarge
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FAT SEXY said:

If you look around these days you'll notice all of the rideshare and delivery apps that are out there.. Thousands upon thousands of people are doing these gig jobs now..

I can't help but wonder if a huge chunk of them are skipping out on filing their taxes.. I'm willing to bet that a substantial percentage of folks aren't doing the required things.
Do yard guys turn in "all" of their money from cutting and trimming yards? Even if they work for a service, they do some on the side, cash under the table. I am sure ride share people have repeat customers where phone numbers are exchanged. Nobody really cared, until now. Now they should because Unkle Sugar is paying them to stay home as well.

Cash under the table has gone on since taxes existed. Cash under the table doing yards and making deliveries while the government paid you to stay home because you are "scared" is part of a huge problem. Much larger than a delivery guy or yard guy making money off the government tit because they are scared of reporting to an employer, yet working for cash on the side.

Why are you asking?
"Green" is the new RED.
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Old Sarge
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And these drivers don't have repeat customers that will pay and tip them on the side on a known date and time? These drivers don't have access to larger vehicles for large groups, that can be arranged for in advance?

You ever been to Mexico? Everybody knows somebody, or is willing and perhaps capable of doing a job on the side. (whisper)...it is not just Mexico either. Lots of service people for organizations either do, or aspire to, do jobs on the side for cash. In some cases, the revenue earned launches legitimate businesses later on.


Edit: To be fair, I changed "most" to "lots" of service people.
"Green" is the new RED.
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Old Sarge
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OK, I'll make it simple, like person to person conversation simple. The app does not apply when people can make face to face "side" deals.

Maybe you and I are not on the same page. If you say they are using an app and not paying, that is another thing. One would think the "I's and "t's" would be covered for tax purposes. That should be wrapped up and if there is "loophole" it should be remedied.

However, if one would think that a service gig for a "company' relationship would not lead to cash on the side, they are gullible.
"Green" is the new RED.
Signel
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everyone with over $600 in cash apps between friends is going to catch an audit. Venmo, zelle, etc...... You have another job and are self employeed, and you must pay 15% on that income zir!
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Old Sarge
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If they have established connections with legal rideshare services, the services are reporting their earnings as it is a liability for them. Those are the services being paid for that ARE being reported. Not the others I spoke of. We are close to the same page here.

While, yes, this is tax "cheating", it does lead to many more businesses being created, which probably leads to a net add in the long term via taxes, it is the ones getting paid by Uncle Sugar to stay home, but yet still run the cash side gigs. One is cheating the government some, the other is profiting FROM the government while running a cash side business.

The first kind of makes me appreciate entrepreneurship even though the seed money was not "right", however the second pisses me off to no end as it is pure LEACH on our system because these have little or no interest in anything but the free $$ NOW, be damned the future.
"Green" is the new RED.
Aggie4Life02
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Taxation is theft.
combat wombat™
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Aggie4Life02 said:

Taxation is theft.


No doubt. But if I have to pay tax on the money I earn, so should everyone else.

FTR, 1099s help keep folks who might not otherwise report that income "honest".
91AggieLawyer
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Though pretty much all of HS and most of college, I had side hustles. Didn't call them that, but I did mowing, car washing/detail, and several other things. This was in addition to part time and even full time jobs I had. For a long time I didn't report the cash (or sometimes checks) I earned because I didn't think I paid any in taxes anyway. It wouldn't have amounted to enough and I didn't keep records for a long time. When I realized that I wasn't getting back in refunds what I was paying in, I started to keep records (coincidentally coincided with having taken accounting that previous semester) and found that I could offset my employment withholding with reported side hustle deductions.

Point here is that there are 2 sides of the tax equation -- what they earn and what they can deduct. They may actually be leaving money on the table by not reporting it, unaware of what they can claim in deductions.
Tea Party
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combat wombat said:

Aggie4Life02 said:

Taxation is theft.


No doubt. But if I have to pay tax on the money I earn, so should everyone else.

FTR, 1099s help keep folks who might not otherwise report that income "honest".

Just because the government steals from you doesn't mean you should support the government stealing from others as well.
Learn about the Texas Nationalist Movement
https://tnm.me
Clown_World
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I would be a lot more interested in how members of Congress can accrue 7,8,9 figure net worths on 174K a year as opposed to finding out what Karen is making on her Etsy shop.
TChaney
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combat wombat said:

Aggie4Life02 said:

Taxation is theft.


No doubt. But if I have to pay tax on the money I earn, so should everyone else.

FTR, 1099s help keep folks who might not otherwise report that income "honest".
If I have to wear a mask
so should everyone else

If I have to get the vax
so should everyone else

If I have to live next to section 8 housing
so should everyone else

If I have to bake a cake that looks like and anatomically correct severed ***** with a functioning cream dispenser for a trans surgery celebration
SO SHOULD EVERYONE ELSE.


combat wombat™
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Hey, deranged people, I hate paying taxes. Allowing DEAD BEATS to game the system (cheat) isn't the solution. Follow the law, pay as.little as legally required to, and vote for people that will not hike your taxes.

In my experience, I have found that the people cheating/ not reporting income, are the ones who expect ME to pay my "fair share" and who are basically consumers of government services.
Catag94
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If student loans are "Violence" maybe taxes are too!
TXAggie4Christ
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I identify as tax exempt. But I doubt the additional 87,000 IRS employees that will most likely continue the Obama era tradition of targeting conservatives will agree. The auditacity.
Four Seasons Landscaping
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Every gig app requires a W9 before you earn $600, most before you earn anything at all.

IRS checks that 1099 income info regularly. I don't have gig app income but get a letter once a year or so asking where I reported income from a random client.

If you earn xx,000 driving for Uber, you aren't going to be able to hide that from the IRS.

The real challenge is tracking your expenses that went into that income.
javajaws
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Four Seasons Landscaping said:



The real challenge is tracking your expenses that went into that income.


Every woman should have a side hussle pretending to be a sex worker. They can then expense every piece of clothing, makeup, shoes, etc they buy. And eating out (pun intended) now becomes expensable as well!
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." - Ben Franklin
Four Seasons Landscaping
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Don't stop there, plenty of opportunity for guys like you to do it too.
javajaws
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Four Seasons Landscaping said:

Don't stop there, plenty of opportunity for guys like you to do it too.


My expenses would definitely cover my potential income!
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." - Ben Franklin
Aggie4Life02
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combat wombat said:

Aggie4Life02 said:

Taxation is theft.


No doubt. But if I have to pay tax on the money I earn, so should everyone else.

FTR, 1099s help keep folks who might not otherwise report that income "honest".



"If the Feds steal from me, I want to make sure they steal from everyone else."


I say more power to 'em.
Four Seasons Landscaping
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How do you know they are "playing a game of chance with the IRS"?
AGHouston11
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CoachO_08 said:

I would be a lot more interested in how members of Congress can accrue 7,8,9 figure net worths on 174K a year as opposed to finding out what Karen is making on her Etsy shop.


Congress takes a class for incoming freshman on learning how to be expert investors! No other explanation for their high success rates right ?

This will never be looked into.
Cromagnum
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TChaney said:

combat wombat said:

Aggie4Life02 said:

Taxation is theft.


No doubt. But if I have to pay tax on the money I earn, so should everyone else.

FTR, 1099s help keep folks who might not otherwise report that income "honest".
If I have to wear a mask
so should everyone else

If I have to get the vax
so should everyone else

If I have to live next to section 8 housing
so should everyone else

If I have to bake a cake that looks like and anatomically correct severed ***** with a functioning cream dispenser for a trans surgery celebration
SO SHOULD EVERYONE ELSE.




Tell the government to quit finding ways to waste money and maybe taxes could be reduced. Meanwhile all the brokeasses can pay their 10% vig on their 10k salaries just like the big boys paying 30%.
Owlagdad
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combat wombat said:

Aggie4Life02 said:

Taxation is theft.


No doubt. But if I have to pay tax on the money I earn, so should everyone else.

FTR, 1099s help keep folks who might not otherwise report that income "honest".


You don't understand. These able bodied youngsters , some even with useless degrees, have less than you. Don't judge them because they sleep until noon, then drive people to the airport and pocket the money. They are victims , especially victims of guys who make $150-$200k and work 12 hours a day sometimes, and want to get to the airport so they can go back to their families and mortgaged homes.
When you finally see the light, you will respect the IRS more for overlooking them and going after the suburban Dad's claim that he gave 10% of his earnings to the church like his God tells him to.
Clown_World
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Obviously the feds need more of our money so we can continue to buy billions of dollars worth of weapons for the Taliban...
Owlagdad
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So if student loans are forgiven, can we get the forgiven loans classed as income?
They tax my social security (Thanks Biden vote)
Four Seasons Landscaping
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Quote:

Obviously I cannot know everything, but I'm thinking there is a high probability that many of these gig workers (especially the delivery drivers) aren't filing and hoping they slip under the radar.
I guess what I'm asking is what exactly are you basing that thought on?

They get a 1099 every spring just like every independent contractor. The only difference in my experience is the tech companies are more vigilant about making sure those 1099s go out than most people that should be sending a 1099.

Gig worker's income has a SIGNIFICANTLY higher level of tracking than brick and mortar cash businesses.
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