IRS expands focus on sharing economy earnings in 2025, raising compliance risks for taxpayers with rental or side gig income.

IRVINE, CA / ACCESS Newswire / September 15, 2025 / The Internal Revenue Service (IRS) is sharpening its focus on income earned through short-term rental and gig platforms, including Airbnb, Turo, and similar services. Tax experts say the increased scrutiny in 2025 reflects the agency's broader push to close reporting gaps as more taxpayers rely on side income.

Clear Start Tax, a national tax relief firm, warns that individuals who rent out homes, list cars for hire, or participate in gig economy platforms could face audits or penalties if their earnings are not properly reported.

"A lot of people think of Airbnb or Turo income as ‘extra cash,' but the IRS views it as taxable income just like wages," said a Clear Start Tax spokesperson. "With enhanced 1099 reporting and data-matching tools, the agency is making it much harder to leave that money off your return."

The IRS has already expanded requirements for third-party platforms to issue Form 1099-K when earnings exceed certain thresholds. This means taxpayers who once relied on informal arrangements are now more likely to see their earnings automatically reported to the IRS.

"The issue isn't just whether you get a 1099," Clear Start Tax explained. "If your side income shows up in digital payment records or is easily traceable, the IRS can still flag it. Even deductions like cleaning fees, insurance, or mileage need to be carefully documented to hold up under review."

Tax professionals recommend that short-term hosts and car-sharing participants keep detailed records of rental periods, expenses, and platform fees. Failure to do so could result in disallowed deductions and larger tax bills.

By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.

"The bottom line is that the sharing economy is no longer under the radar," the Clear Start Tax spokesperson added. "If you're earning side income, you need to treat it like a real business - with the same level of recordkeeping and tax reporting."

About Clear Start Tax

Clear Start Tax is a trusted national tax relief firm dedicated to helping individuals and businesses resolve IRS and state tax issues. With a focus on education, transparency, and proven strategies, Clear Start Tax has assisted thousands of taxpayers in reducing liabilities, negotiating settlements, and regaining financial stability.

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SOURCE: Clear Start Tax