# Uber's 1099: Why IRS does not ask Uber to fix it?



## ebrain (Oct 3, 2016)

I own 4 corporations, and did Uber to work on an idea for couple months (gave up already).

1099 from Uber => They are reporting to IRS an income that is at least 25% higher than my corporation actually received.

I get 1099 from other corporations all the times. It always reports exactly what was paid to my business not an inflated number giving IRS an impression as if my business received 25% more than what my bank statements are reporting.

This is ridiculous. IRS should ban this nonsense in my opinion. They need to report actual earning an individual or the business received from Uber, and let them deduct any additional expenses if needed. It is that simple


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## uberdriverfornow (Jan 10, 2016)

Yep, it's ridiculous. Given Uber's propensity for offshore tax havens it's not surprising. I'm not really sure what benefit this would have though. Even though is reporting all of the fare on our 1099, I'm not sure how it would benefit them.


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## tohunt4me (Nov 23, 2015)

ebrain said:


> I own 4 corporations, and did Uber to work on an idea for couple months (gave up already).
> 
> 1099 from Uber => They are reporting to IRS an income that is at least 25% higher than my corporation actually received.
> 
> ...


They went way overboard with mine.
One month I worked 3 days.
Uber shows over $3,000.00
Outright lies !


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## steveK2016 (Jul 31, 2016)

ebrain said:


> I own 4 corporations, and did Uber to work on an idea for couple months (gave up already).
> 
> 1099 from Uber => They are reporting to IRS an income that is at least 25% higher than my corporation actually received.
> 
> ...


Did you authorize those other business to be your collection agent for credit card payments?

Did you owe those other business services fees for the transactions performed during those business transactions?

Uber is not doing anything out of the ordinary here. This is a very similar method of taxes that our business has to do when we sell on Amazon.

Well have a list price of $20, Amazon says they will keep $4 as a service fee. Amazon is the company that processes the credit card transaction, so they keep their fee and deposit $16 into our designated bank account.

On our taxes, we claim a gross sale of $20 and deduct $4 in transaction fees. At the end of the day, it's the same thing. You aren't paying any extra in taxes, but it shows the relationship of you, a contractor, paying Uber a service fee for the use of the app. It may not look like that in real time, but that's exactly what is happening financially.


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