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Demonstrating that the Internal Revenue Service can crack down on gig workers, the agency has received permission from a federal court to obtain information from JustAnswer LLC about US taxpayers who received compensation on the platform.
California District Court Judge Dolly Gee granted the agency’s request to investigate John Doe subpoenas, which seek information about a group of people the government has not previously identified by name or other means. The call seeks information on people who received $5,000 or more to answer questions on the JustAnswer platform each year from 2017 to 2020.
“The gig economy has grown in recent years, and concerns about tax compliance have grown,” Deputy Attorney General David Hubbert said in the Department of Justice. Press release. “This John Doe lawsuit shows that in working with the IRS we will use all the tools at our disposal to ensure that regardless of how US taxpayers earn their money, they properly report and pay their taxes. Those who choose to be at the forefront of the gig economy should know, and obey, all that they need taxes.”
JustAnswer did not immediately respond to a request for comment.
Information about gig workers is difficult to obtain due to the fragmentation and diversity of the work. But research colleagues have shown that many participants in the gig economy earn less than the minimum wage in the state where they work.
While the DOJ and IRS have not indicated that they are seeking John Doe subpoenas on other platforms, the press has cited a number of other platforms as well, including Airbnb, Uber, Lyft, DoorDash, and Etsy.
In November, the IRS released a new update instructions to the gig work platforms instructing them to report information to the organization of taxpayers who earned more than $5,000 in 2024, more than $2,500 in 2025, and more than $600 in 2026 and beyond.
Previously, gig platforms only reported to the IRS for workers who earned more than $20,000 and completed 200 transactions. The new platform is designed to make it harder for gig workers to avoid paying taxes on their earnings.
“Like their American counterparts who earn money through traditional means, US taxpayers who earn money from digital and other platforms that include the gig economy must pay taxes,” IRS Commissioner Danny Werfel said in a statement. “The country is shrinking due to tax evasion, and we will work with our partners to strengthen the country’s tax laws.”
