Mr. Turbeville is concerned that a recent tax change intended to crack down on tax evasion by small businesses and those operating in the “gig” economy will mean more paperwork and headaches from the Internal Revenue Service. He is hopeful that if there are any unintended discrepancies, his business will be too small to attract an audit.
A tweak to the tax code enacted last year was intended to ensure that those who use services such as Venmo, CashApp, Etsy, StubHub and Airbnb to collect money are reporting all their income to the I.R.S. The change was part of the Biden administration’s efforts to narrow the $7 trillion “tax gap” between revenue that is owed but not collected.
But for millions of Americans, the new requirement means they will be faced with additional tax forms, potentially higher tax bills and a lot of confusion. That is stirring anxiety among some of the middle-class taxpayers and independent business owners President Biden promised would spared from greater tax scrutiny.
“It is very confusing, and I can see how it would be very stressful for someone who didn’t have an accountant,” Mr. Turbeville said. “I feel very much in the dark about it.”
[And now a NSFW word from Eric “Otter” Stratton about the stress Biden voters now feel … — Ed]
Join the Conversation
VIP members get the ability to comment on articles.