Gig economy workers have good reason to be wary of the taxman.
Independent contractors are among the taxpayers most at risk of failing to accurately report their income at filing time, according to a new survey of enrolled agents — those federally licensed tax professionals who represent taxpayers in disputes before the IRS.
Earlier this summer, the National Association of Enrolled Agents polled 2,300 members about the most common reasons taxpayers get a CP2000 notice. That form means, according to the IRS, "the income and/or payment information we have on file doesn't match the information you reported on your tax return." Your tax bill could change as a result.
Failing to report payment for work performed as an independent contractor was the top reason agents cited for receiving a CP2000, with 60.2 percent noting it. Some 38.5 percent pointed to taxpayers who rush to file before they have all the necessary financial documents — something that may be easy to do if you're juggling multiple 1099s and W-2s.