While billionaires stash fortunes in offshore havens, the IRS is targeting gig workers who make a few bucks answering questions on a platform where people earn side income by sharing expertise.
A federal court in California has authorized the IRS to demand records from JustAnswer. While ProPublica revealed that America's wealthiest often pay lower tax rates than schoolteachers, the IRS is focusing its investigative muscle on gig workers trying to earn extra income.
"The world is getting smaller for tax cheats," crowed IRS Commissioner Danny Werfel, in a Department of Justice press release – though apparently not small enough to catch the billionaire class exploiting sophisticated tax avoidance schemes. While JustAnswer users face scrutiny, the wealthiest Americans continue employing armies of accountants to legally dodge billions in taxes through complex trusts and partnerships that the IRS fails to audit.
In the press release, Deputy Assistant Attorney General David Hubbert warned that "those who choose to be on the forefront of the gig economy must be aware of, and abide by, all their tax obligations." I have news for you, Mr. Hubbert — no one "chooses" to work in the gig economy; it's a last resort for millions of Americans struggling to make ends meet in an economy where stable, full-time jobs with benefits like yours have become increasingly scarce.
The IRS's priorities are clear: It's easier to squeeze blood from a stone than to challenge the complex tax shelters of the ultra-rich. So while billionaires enjoy their legal tax loopholes, the veterinarian answering late-night pet questions better keep perfect records — the tax man is watching.
Previously:
• IRS admits it audits poor people because auditing rich people is too expensive
• How the super-rich defeated the IRS's crack Global High Wealth unit
• Read ProPublica's excellent work on the IRS's targeting of poor taxpayers
