Craig White and Matias Sokolowski (University of New Mexico), “Gig Economy Tax Noncompliance Comes at a Cost” (Tax Notes, Aug. 17, 2026):

The rapid expansion of the gig economy has fundamentally reshaped the nature of work, income reporting, and tax compliance in the United States. Millions of individuals are earning income through platform-based apps as supplemental income or as a primary means of support. Tax reporting for this income is often via Form 1099, as an independent contractor, rather than as an employee via Form W-2. While gig-based income creates new opportunities and flexibility for workers, it also increases existing challenges to tax administration. These challenges pertain to both tax revenue and to programs administered through the tax code that rely on accurate and complete reporting.

As we discuss further in this article, it is common knowledge that independent contractor reporting, as opposed to employee reporting, results in greater inaccuracy and completeness issues. . . . These opportunities are much more limited for employees because Form W-2 provides greater third-party reporting accountability and limited deduction of expenses on Form 1040.

These reporting differences are often seen in terms of the revenue tax-gap implications to the federal government and other tax jurisdictions. However, accuracy and compliance issues also affect programs administered through the tax system that directly benefit the individual worker. . . . This article focuses on a deferred benefit that is based on a worker’s accurate tax compliance and reporting history: Social Security retirement payments.