The IRS Is Tracking Gig Economy Income—Are You Prepared?
Read Time: 7 minutes
By Shamelle Reveter
A little something literally just crossed my desk, and it’s something I had to share with all of you because, frankly, it’s too important to ignore. If you’ve been paying attention to the news or following what GYSIO’s been up to, you know its important that we stay ahead of the curve and keep you well informed. Well, the IRS just kicked off a new campaign targeting gig income, and it’s something we need to talk about.
Here’s the scoop: The IRS has recently obtained court approval to serve a John Doe summons on JustAnswer LLC, a platform that lets people pay to ask questions and receive advice from professionals in various fields. This move is part of a larger effort to ensure that people who earn income through gig platforms like JustAnswer, Backstage, Stage32, Casting Networks, Fiverr, Freelancer (just to name a few) are properly reporting that income on their taxes.
Now, I know some of you may be thinking, “But we’re creatives, artists, and business owners! We don’t have to worry about that, right?” Wrong! The gig economy is exactly what it sounds like—work where individuals are paid on-demand through third-party platforms. This includes everything from freelance gigs to part-time work, and yes, even the advice-giving platforms and production gig platforms like JustAnswer and ProductionHub .
Why Does This Matter?
For starters, the IRS wants to make sure all income is reported—even if it doesn’t come with a formal W-2 or 1099. Whether you’re paying a gig worker for a freelance video edit or a fitness trainer for a class, the IRS expects that money to be accounted for. If you’re using platforms like CashApp, Venmo, or Zelle to send payments, you could very well become one of their targets if the people you’re hiring aren’t reporting their earnings properly.
Here’s the kicker: If the IRS uncovers unreported income through platforms like JustAnswer, they’ll expand their scrutiny to other third-party platforms—and that could include a lot more of the gig economy you’re tapping into right now.
It’s Time to Take Ownership
Now, I need to talk to you about something important—something that might be uncomfortable, but something that could shift the way you run your business. It’s time to stop thinking like a freelancer or a creator, and start thinking like a CEO. If you’re running a company, whether it’s in the entertainment industry, fitness, or anything else, you need to operate your business with the mindset of a leader. Level up!
And here’s the thing: Do not be afraid to pay your workers differently than other freelance or private companies. Pay them in a way that reflects your professionalism, your integrity, and your commitment to building a strong team. I want you to be confident, 10 toes down, that you will attract the type of people who respect your standards and want to be part of a business that operates with excellence.
If you’re paying people on the fly via platforms like Venmo or Zelle, guess what? You’re attracting team members who are thinking like freelancers—because that’s how you’re treating them. And if you’re thinking like a freelancer yourself, you’re not setting up your business to thrive in the long term. Don’t be mad at me for telling the truth! It is what it is.
You’re not going to build a wealthy, professional business with a creator’s mindset. You’ve got to think like a CEO. And here’s the challenge: I want you to assess why you might be compromising your business standards. Is it a scarcity mindset? Fear of not being liked? Or maybe you’re not operating with integrity and would rather pay people a discounted rate just to get them paid quickly? STOP IT.
Be the leader—not the majority. Get rid of that “starving artist syndrome.” Be the Oprah, the NBC, the Tyler Perry Studios of your industry. Get your mind right, get your operations in order, and stand 10 toes down. You got this.
And this advice is not just for those within the entertainment industry. Its for every entrepreneur, small business owner and freelancer no matter the industry.
I’ll be honest with you. I had to learn this the hard way. I lost money, time, and attracted the wrong team members because I wasn’t thinking like a business owner. I was acting out of fear and scarcity. But when I challenged myself to confront my mindset and be honest about what I was doing, that’s when everything changed for the better.
I work every single day to make sure my businesses follow the same standards I live by. It’s not easy, but trust me—it’s so worth it. I no longer accept team members who do not operate with integrity or GYSIO’s goals. I am very careful as to who I allow GYSIO to partner with. You should to. Or hey, learn the hard way… Ultimately, the final decision is up to you.
What Does This Mean for You?
As a business, you need to take your operational procedures seriously. This isn’t just about getting paid; it’s about operating with integrity and managing your finances like a true business. And that’s where GYSIO comes in! If you’re ready to shift from an artist or creator mindset to an owner mindset, we’re here to help you set up solid operational procedures for your business.
Let’s Make Sure You’re Set Up for Success
If you’re feeling a little overwhelmed about how to align your business with IRS expectations, don’t worry. We’ve got your back. Schedule a call with your immediate advisor to discuss how we can help you set up a system that works like a well-oiled machine. Your initial 30-minute call will outline exactly what the service looks like, and we’ll provide you with a quoted price afterward.
At GYSIO, we don’t just want you to survive as a creative. We want you to thrive as a business owner—with the right structures and policies in place to keep everything above board and running smoothly.
Stay ahead of the game, stay transparent with your team and gig workers, and let’s keep your business operating like the professional powerhouse it’s meant to be. Because at the end of the day, the IRS is watching, and you don’t want to be caught unprepared.
Until next time, stay smart, stay compliant, and let’s do this thing!
Your Celebrity Accountant, Shamelle Reveter
President at GYSIO Business & Bookkeeping
Empowering Creatives with Business Mastery in the Entertainment Industry
For personalized business and bookkeeping advice, visit gysio.org or reach out directly at info@gysio.org.