# This is what the "Day of Reckoning" looks like!



## Seamus (Jun 21, 2018)

Took this from another forum for those who may not have seen it. People on here are constantly making comments that drivers will never get audited, your income is too small to worry about, etc.etc.etc. Do it right and don't listen to the idiots who keep saying you will never get audited.

Here is an example of a driver who didn't get a 1099 so never reported his income. They have other ways of finding out besides the 1099.

It's foolish not to do it right as legit most of your income is offset. Do the right thing and sleep easy.


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## JaxUberLyft (Jan 9, 2019)

While I agree that drivers should file schedule C and report all income (and losses) as to their rideshare gig, I don't think the attachment from New Jersey is pursuing $ from the driver...recall that in mid November 2019 The state of NJ sued Uber for $649 Million worth of unpaid unemployment, and disability insurance, as well as interest.

Instead, I'll bet NJ is compiling data to go after Lyft similarly...could bring the total up to a cool billion! NJ could turn into the east coast nightmare for LyftUber - similar to AB5

If the feds (not under current administration, of course) got into the act, the could be looking for billions, possibly 10s of billions in payroll taxes - FICA, etc. 

One of the big negatives of Sch C income is no contributions toward social security, reducing that benefit substantially upon retirement.


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## tohunt4me (Nov 23, 2015)

JaxUberLyft said:


> While I agree that drivers should file schedule C and report all income (and losses) as to their rideshare gig, I don't think the attachment from New Jersey is pursuing $ from the driver...recall that in mid November 2019 The state of NJ sued Uber for $649 Million worth of unpaid unemployment, and disability insurance, as well as interest.
> 
> Instead, I'll bet NJ is compiling data to go after Lyft similarly...could bring the total up to a cool billion! NJ could turn into the east coast nightmare for LyftUber - similar to AB5
> 
> ...


Then he will get Another letter from the state Turd Hustling i mean Taxation Dept. Which will alert the Feds .
Then they will both make inquiries as to filings.

Sooner or Later
You will pay them to JUST GO AWAY !

EVEN MORE FUN IS WORKING 2 OR MORE STATES IN SAME YEAR.
THEN FILING STATE INCOME TAX FOR EACH.

Travel around the Country building Refineries & Navy ships 
All fun till tax forms flow in from multiple states

Throw in a little Foreign stock with tax due to other governments to liven things up !


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## Seamus (Jun 21, 2018)

JaxUberLyft said:


> While I agree that drivers should file schedule C and report all income (and losses) as to their rideshare gig, I don't think the attachment from New Jersey is pursuing $ from the driver...recall that in mid November 2019 The state of NJ sued Uber for $649 Million worth of unpaid unemployment, and disability insurance, as well as interest.
> 
> Instead, I'll bet NJ is compiling data to go after Lyft similarly...could bring the total up to a cool billion! NJ could turn into the east coast nightmare for LyftUber - similar to AB5
> 
> ...


Does it really matter that the intention is to get Lyft and not you? Sheesh, small consolation. You just became collateral damage then. You see what they are requesting do you not?


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## JaxUberLyft (Jan 9, 2019)

Yes - but look at the whole letter - that auditor is building a case of employee misclassification against Lyft.

I hope everybody files Sch C...I would think we all have to since LyftUber reports payments to drivers to IRS, and, I assume, states with that levy income tax (Florida does not...woo-hoo!)

I hope the driver subject in the letter has the sched Cs and sends them to NJ auditor...that should be the end of it for the driver.


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## Seamus (Jun 21, 2018)

JaxUberLyft said:


> One of the big negatives of Sch C income is* no contributions* toward social security, reducing that benefit substantially upon retirement.


Are you aware of the self employment tax?



JaxUberLyft said:


> Yes - but look at the whole letter - that auditor is building a case of employee misclassification against Lyft.


Again, what does that matter? Have you never been audited? When you can't produce the schedule C's you never filed, the State Taxation dept is then notified and a few years later they are kind enough to notify the IRS.

Not trying to be a wise ass just have no idea what point you are trying to make. So he is screwed, but he wasn't their primary target??? That's small consolation, screwed is screwed.


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## JaxUberLyft (Jan 9, 2019)

Yes - 15.3% essentially both sides of FICA / Medicare. Employees pay half of that 7.65%. That's the tens-of-billions the Feds could recover

My guess is that in most markets, mileage and expenses negate nearly all income from driver pay.

I'm not sure how this gig would pan out for employee-drivers...if the mileage is reimbursed at the federal rate, then it washes out. If not, it becomes an unreimbursed employment expense, which used to be deductible subject to 2% floor, but no longer


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## Seamus (Jun 21, 2018)

JaxUberLyft said:


> My guess is that in most markets, mileage and expenses negate nearly all income from driver pay.


Agreed, which makes it a good side gig or second job. Even more of a reason to do your taxes correctly. Also, your primary w2 job takes care of your social security. It's a tough gig for full timers who won't pay much taxes, but on the other hand will get minimal social security. They best be investing wisely for their future.


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## LADryver (Jun 6, 2017)

Seamus said:


> Took this from another forum for those who may not have seen it. People on here are constantly making comments that drivers will never get audited, your income is too small to worry about, etc.etc.etc. Do it right and don't listen to the idiots who keep saying you will never get audited.
> 
> Here is an example of a driver who didn't get a 1099 so never reported his income. They have other ways of finding out besides the 1099.
> 
> ...


Do you know what this is? Have you read it? This has nothing to do with income and expenses. Do you know what New Jersey is doing? They are investigating employee status for Lyft drivers. A day of reckoning for Lyft, to be sure.


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## Seamus (Jun 21, 2018)

LADryver said:


> Do you know what this is? Have you read it? This has nothing to do with income and expenses. Do you know what New Jersey is doing? They are investigating employee status for Lyft drivers. A day of reckoning for Lyft, to be sure.


Thanks Captain obvious.

The point was they are asking for four years of his schedule c and if you don't report your income because you didn't get a 1099 then this is an example of how you can still get exposed. There are people running around this forum saying that if you don't get a 1099 you will never get caught not declaring your income.

Not a difficult concept to understand but apparently on this forum it is too much thinking.


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