It's impossible to avoid paying “Uncle Sam “his due, and if you want to avoid an audit, do it correctly the first time. Unlike W-2 workers, self-employed people do not get their taxes deducted directly from their paychecks. It is their responsibility to keep track of their debts and make timely payments.
Since taxes aren't deducted automatically, self-employed people have a higher take-home pay than wage workers. If you don't want the IRS to come after you, set aside a portion of those funds to meet your tax obligations.
"Company owners, whether they are self-employed freelancers or company owners, are responsible for ensuring that their business complies with tax law," said Shoshana Deutschkron, Upwork's vice president of communications and brand. "Financial literacy is an important skill, and part of that literacy is an understanding of taxation."