Tucked inside the American Rescue Act is a tax change that has big implications for tax revenue and the gig economy. Starting for tax year 2022, many contractors with gig economy companies like Uber UBER -1.4%, DoorDash and Lyft LYFT -4.1% will be getting 1099 forms when they previously wouldn’t have.

The end result is that many more gig workers can accurately report their income — which, in turn, means that federal and state governments will collect billions more in income tax revenue.

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