The gig economy has transformed the contours of the modern workforce, bringing forth a unique combination of flexibility, autonomy, and diversified income streams. Whether you’re driving for a ride-sharing platform, developing eye-catching graphics as a freelance designer, or mastering home repairs as a handyman, you’re participating in an ever-evolving, vibrant economy. But with the freedom of gig work comes an often overlooked aspect: understanding and managing your tax obligations. In this blog, I’ll cover some of the essential tax issues and IRS forms with which every gig worker should be familiar.

Each year in the United States, hundreds of thousands of individuals become victims of identity theft.  In fact, in 2022, the Federal Trade Commission received over 1.1 million reports of identity theft.  For the same year, taxpayers filed over 228,000 Forms 14039, Identity Theft Affidavit, claiming they were experiencing tax-related identity theft, which occurs when a bad actor intentionally steals a taxpayer or dependent’s personal information without their knowledge or consent and uses it to file a fraudulent tax return.

One component of the National Taxpayer Advocate’s annual reports to Congress that doesn’t receive as much attention as it should is the research studies we conduct and present. It’s hard to overstate their value. As the IRS seeks to transform the taxpayer experience and fix problems, well-designed research that scopes problems and explores solutions is essential.

Have you moved since you filed your 2022 tax return? If so, make sure you update your address with the IRS now.

The IRS expects to issue all refunds for individual returns that do not have errors (or other issues that would delay processing) by direct deposit and paper checks. But if you have not received your 2022 tax refund by the end of December, you will need to update your address in order to receive it timely. That’s not the only reason you should keep your address up-to-date.

Collegiate athletics is a competitive and popular multibillion dollar business industry. With television rights deals, conference realignment, recruitment, and much more, collegiate athletics garner significant media coverage. One topic receiving significant recent attention is the area of Name, Image, and Likeness (NIL) agreements, which allow student-athletes to financially benefit from their NIL. Because of the growing influence of student-athletes as celebrities in social media and their communities, the attention surrounding NIL is not surprising. NIL opportunities have provided new revenue sources for student-athletes that, in some instances, may reach significant sums according to some media outlet rankings of the highest estimated financial value of student-athlete NIL agreements. Due to the potential tax consequences, student-athletes should exercise appropriate due diligence before entering into NIL agreements. It is crucial to follow relevant IRS guidance on how to report and pay taxes on NIL income.

This week, from October 23-27, is the 2023 National Celebration of Pro Bono. The American Bar Association’s Standing Committee on Pro Bono and Public Service created Pro Bono Week in 2009 to celebrate the pro bono work that volunteer lawyers and legal professionals do. This national event is intended to inspire even greater pro bono participation by lawyers and legal professionals. Legal organizations across the country are encouraged to plan events and share them at celebrateprobono.org.

This week, from October 23-27, is the 2023 National Celebration of Pro Bono. The American Bar Association’s Standing Committee on Pro Bono and Public Service created Pro Bono Week in 2009 to celebrate the pro bono work that volunteer lawyers and legal professionals do. This national event is intended to inspire even greater pro bono participation by lawyers and legal professionals. Legal organizations across the country are encouraged to plan events and share them at celebrateprobono.org.

As the National Taxpayer Advocate, I advocate for all taxpayers, regardless of whether they reside in the United States or abroad. Our hearts go out to the impacted people in Israel, the West Bank, and Gaza because of the terrorist attacks beginning on October 7, 2023. I applaud the IRS for quickly providing filing and some payment relief for these taxpayers.

As of today, it appears Congress may not approve appropriations legislation to fund parts of the government, including the IRS, by the start of the fiscal year that begins on Sunday, October 1^st.

In a March 2022 blog, I wrote about the IRS suspension of more than a dozen automated collection letters and notices associated with the filing of a tax return or payment of tax. The suspension was in response to the enormous processing backlog of paper tax returns and correspondence. At the time, I was one of the individuals advocating to stop the notices until the IRS addressed the high volume of calls and millions of pieces of unprocessed correspondence. However, a year and a half later, the suspension of those letters and notices is still in place, but is expected to come to an end sometime this calendar year.

Some penalties require supervisory approval before they can be assessed by the IRS. The applicable statute, however, is vague regarding the point at which this approval must occur. This statutory ambiguity has generated conflicting decisions among the courts, which leaves taxpayers unsure about how they should be treated by the IRS and leads to unnecessary litigation that is bad for everyone. In hopes of bringing additional certainty to this area, the IRS has proposed regulations, for which public comments were open until July 10, 2023. The next step in this regulatory process will be a public hearing to be held on September 11, 2023.

If you filed a  federal income tax return and are expecting a refund from the IRS, you may want to find out the status of the refund or at least get an idea of when you might receive it.

Taxpayer pays balance in full on their tax account as requested by the IRS per letters or notices received. Taxpayer requests refund or abatement for interest, penalties, overpaid tax and/or additional tax.

Taxpayers have the right to appeal an IRS decision in an independent forum. One way that taxpayers may exercise this right is by filing a petition with the United States Tax Court. 

Preparing and filing tax returns can be stressful and confusing, especially if your financial situation has changed or you are filing for the first time. The good news is that free resources are available to help you timely and accurately meet your filing requirements. Taxpayers can receive assistance through the Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), Free File, and MilTax programs. Taxpayers may also seek IRS assistance electronically using online accounts or the Interactive Tax Assistant (ITA), or in person at a Taxpayer Assistance Center (TAC). Each method of assistance, as discussed below, has different qualifications and features, and taxpayers should look at each one before deciding which is best for them.