Earning Income From a Side Hustle? The CRA Might Be Watching!
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Did you know that about 40% of millennials in Canada are part of the gig economy? The number is mixed between millennials who seek gigs or freelance work for passive or part-time income or people who rely on it for their primary income. It includes freelance office work, babysitting, house sitting, personal assistance services, paid work through online platforms, etc.
But that doesn’t even come near the full spectrum of what you might call a “side hustle.” Earning income from things like
Airbnb, ride-sharing, renting out your vehicle, parking space, and others might all come under the definition of a side hustle … and the CRA wants its cut.
Third, the Biden Administration s $1.5 trillion budget for fiscal year (FY) 2022 also focuses on enhancing taxpayer compliance – including an additional $900 million for audits, as part of a 10.4 percent increase in the IRS budget. In addition to IRS spending, the discretionary spending proposal includes $191 million for the U.S. Department of the Treasury s Financial Crimes Enforcement Network (FinCEN) to create a database that tracks the ownership and control of certain companies and organizations. The FY 2022 budget will likely include additional proposals to address the tax gap.
Congressional Initiatives
A number of Senate and House members also have introduced initiatives relating to enhancing IRS compliance of large corporations and wealthy individual taxpayer. While not the prime focus given the Biden Administration s infrastructure proposals, some portions of the below proposals could become part of the legislative deal making.
The battle outside ragin’
And rattle your walls
-Bob Dylan
A change in presidential administrations brings with it the uncertainty of what the political, legal and tax landscape will look like in the future. Statements from the Commissioner of the Internal Revenue Service and the President of the United States are starting to provide clarity of what things will look like going forward. Here’s what we know and what you, as a taxpayer, should be thinking about as you adjust your financial planning.
Government Spending is at Record Levels
The national debt is now
more than $28 trillion dollars. The global pandemic and three rounds of stimulus money have costs. Those costs are only getting bigger as President Biden signaled an aggressive
BOC-PCAG generates additional P287 million in Q1 2021 visayandailystar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from visayandailystar.com Daily Mail and Mail on Sunday newspapers.
Monday, April 5, 2021
Last week the Ninth Circuit issued a win for taxpayers in
US v. Boyd, limiting penalties for non-willful violations of the requirement to file a Report of Foreign Bank and Financial Accounts (FBAR). The FBAR requirement applies to all United States persons with interest in or authority over a foreign financial account where the aggregate value of all such accounts is more than $10,000. Jane Boyd, a United States citizen, was required to file an FBAR due to her multiple bank accounts in the United Kingdom but failed to do so in 2010. After voluntarily disclosing the accounts through the IRS’s Offshore Voluntary Disclosure Program, the IRS found that she had committed thirteen FBAR violations, one for each overseas account.