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What you should know if your job is part of the ‘shared economy’

| Aug 25, 2016 | Corporate & Business Tax |

When people think about employment and paying taxes, they often think payroll taxes and other types of taxes deducted from a worker’s salary by an employer. This would certainly be a pretty good representation for people who work a regular job for a traditional employer.

However, this is not necessarily the way people — or the economy — work anymore. Today, there are people all across Atlanta who take part in what some call the “sharing economy.” And with the new jobs that have developed in this shared economy comes some new problems for employers and employees when it comes to estimating and paying taxes.

As discussed in this Forbes article, jobs that have been created in the sharing economy tend to follow their own rules when it comes to income and paying taxes.

For instance, Uber drivers and people who rent their homes on Airbnd won’t necessarily get the same tax documents every year that people in traditional occupations would get. Workers may not be clear on whether they are employees, contractors or considered self-employed. There is also the potential for more confusion when it comes to determining what is and is not a business expense.

Considering the various nuances and complications that can arise for people working or providing services in the shared economy, it is not surprising that many people run into some problems when it comes time to pay taxes or file a return.

In response, the IRS recently launched a new website to address specific issues that the sharing economy presents to workers. The site includes information on areas like filing requirements and various tax implications for people working in the emerging industry.

While the information from the IRS is certainly a good resource to check out if you are someone who benefits from this sharing economy, it can also be wise to consult an attorney regarding your specific tax obligations and return options. Considering the fact that the industry and related tax laws are always changing, making sure you are getting up-to-date information from a trusted source can help you avoid many tax-related problems.

We insist that your taxpayer rights are protected and your options are known.

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