IRS gets John Doe summons for JustAnswer workers

A federal court has greenlit the Internal Revenue Service to serve a John Doe summons on JustAnswer LLC, seeking information about U.S. taxpayers who were paid for answering questions as "experts" from 2017 to 2020.

The IRS wants the records of individuals who were paid by Covina, California-based JustAnswer, which operates a digital platform where the public pays for answers by professionals such as tax pros, doctors, lawyers, veterinarians and engineers.

In the court's order, U.S. District Judge Dolly Gee for the Central District of California found there is a reasonable basis for believing that U.S. taxpayers who were paid by JustAnswer to answer questions as experts may have failed to comply with federal tax laws. The order grants the IRS permission to serve what is known as a John Doe summons on JustAnswer.

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Andrew Harrer/Bloomberg

There's no indication that JustAnswer has engaged in any wrongdoing in connection with its digital platform business, authorities said, adding that the IRS uses John Doe summonses to obtain information about individuals whose identities are unknown and who possibly violated internal revenue laws.

JustAnswer must produce records identifying U.S. taxpayers who have used its platform to earn income, along with other documents relating to their work.

"The gig economy has grown in recent years and with it, the concern for tax compliance issues has increased," said Deputy Assistant Attorney General David Hubbert of the Justice Department's Tax Division, in a statement. 

"Like their fellow Americans who earn income through traditional means, U.S. taxpayers who earn income from digital and other platforms that comprise the gig economy need to pay their fair share of taxes," added IRS Commissioner Danny Werfel in a statement. 

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