# IRS Came knockin thanks to Uber/Lyft 1099's!



## Elmo Burrito (Feb 3, 2017)

Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at.


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## Dekero (Sep 24, 2019)

I would really love to see all the numbers that make up a tax Liability of 4k difference from what assumably you already filed.. good lord....


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## Seamus (Jun 21, 2018)

IRS uses document matching software so if your information doesn't match the 1099 then eventually it will catch up to you so you must use the total on the 1099.

What you didn't (or don't) understand is the 1099 includes ALL the money paid to them for your rides and that is what you report as your 1099 Gross revenue on schedule C. HOWEVER, then you deduct all the money Uber and Lyft kept in fees on your schedule C so that is what you actually were paid but it's different then the 1099 amount. It works out, you just have to show it.

The good news is that as long as you used the amount you were actually paid you most likely will not owe any additional taxes. You most likely will just have to amend your return to match the 1099 gross and then deduct the service fees. If that is the only issue you file an amended return and won't owe any additional taxes. Best to see a tax professional to amend your filing.


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## 25rides7daysaweek (Nov 20, 2017)

Elmo Burrito said:


> Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at.


I think you need an accountant 
instead of turbotax dude


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## UberTaxPro (Oct 3, 2014)

Elmo Burrito said:


> Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at.


You might not even have to amend. Depending on the letter you may be able to submit a corrected schedule c and they will re-calculate the tax for you and either send you another bill (for less most likely) or issue you a refund. You can amend if you need to but responding to the letter is generally less expensive for you.


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## Cold Fusion (Aug 28, 2019)

Uber & passengers are the reason for all our problems 🙃
They Suck !


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## oldfart (Dec 22, 2017)

Elmo Burrito said:


> Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at.


I got a similar letter from the irs regarding a 1099 issue (not an Uber issue). In my case "income" was reported as income rather than what it was; proceeds from a sale. I reported it as what it was: capital gains. But the irs saw it as income. And the difference was the irs said I owed $12000.

They did invite any explanation I could provide so I sent them my contract of sale and settlement sheet with a note that this was not income and that I had reported capital gains which was right and proper

I got a letter back telling me that my tax return was accepted as filed and that I owed them $0

So the point here is to tell them what happened and file a schedule c


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## Ssgcraig (Jul 8, 2015)

Seamus said:


> IRS uses document matching software so if your information doesn't match the 1099 then eventually it will catch up to you so you must use the total on the 1099.
> 
> What you didn't (or don't) understand is the 1099 includes ALL the money paid to them for your rides and that is what you report as your 1099 Gross revenue on schedule C. HOWEVER, then you deduct all the money Uber and Lyft kept in fees on your schedule C so that is what you actually were paid but it's different then the 1099 amount. It works out, you just have to show it.
> 
> The good news is that as long as you used the amount you were actually paid you most likely will not owe any additional taxes. You most likely will just have to amend your return to match the 1099 gross and then deduct the service fees. If that is the only issue you file an amended return and won't owe any additional taxes. Best to see a tax professional to amend your filing.


Usually it's because you drove 18,952 miles and claimed 30,000 miles. Biggest flag is rounded numbers for miles.


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## Elmo Burrito (Feb 3, 2017)

Ssgcraig said:


> Usually it's because you drove 18,952 miles and claimed 30,000 miles. Biggest flag is rounded numbers for miles.


I drove and recorded 19000 actual business miles and that's what I claimed. I'm wondering if the IRS sees ride share drivers as an easy target to shake down, and how many drivers just bend over, and pay up to make them go away. Or my lottery number came up? If I'm doing something wrong which I admit human error is always a possibility why didn't they come after me for 2018 because I used turbo for that also, and filed exactly the same way. So far nothing from them on 2018 tax return.


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## Seamus (Jun 21, 2018)

Elmo Burrito said:


> I drove and recorded 19000 actual business miles and that's what I claimed. I'm wondering if the IRS sees ride share drivers as an easy target to shake down, and how many drivers just bend over, and pay up to make them go away. Or my lottery number came up? If I'm doing something wrong which I admit human error is always a possibility why didn't they come after me for 2018 because I used turbo for that also, and filed exactly the same way. So far nothing from them on 2018 tax return.


What is the confusion? You already said your numbers didn't match your 1099. Mystery solved. If you did the same in 2018 its only a matter of time. Not matching a 1099 is the same outcome as not matching w-2s if employed. 100% going to trigger an inquiry.


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## Stevie The magic Unicorn (Apr 3, 2018)

you need to line item the difference between what uber collects from the customer and what you actually get paid as processing/commission to uber and processing/commission to lyft.

The airport fees are also a line item deduction, same result.

Contact the agent in charge of your audit and _explain the situation_. (that you were never paid the amount that uber collected and a third party took/paid expenses in your name)

It was an honest mistake and you were just missing a heck of a lot of line items deductible business expenses. if it was your first year filing as an uber/lyft driver pray they have some understanding.

Make sure you beg for forgiveness and strongly imply you want to correct the issues for 2018 as well as do it right the _first time _for 2019

You never actually "made" that money and more than likely this was generated semi-automatically.

Basically you dropped the ball on filing your taxes correctly.

I hate to say this but a meeting and or a phone call with an actual agent and a proper audit of ALL your expenses *might* be the best way to address your situation and get you squared away.

I'm not a tax professional but i've known other people who dropped the ball and done _even worse_ actually. And STILL gotten away with it once the IRS got involved. I even know one guy who got audited and came out of the deal with a check because he screwed himself over so bad filing his taxes.

No joke, his taxable income dropped after the IRS agent realized that while he was missing 30,000 in cash revenue he was also missing $35,000 in expenses {taxi rental gas and tolls}) He basically just filed his cab company 1099 and didn't file any expenses or cash at all.

A tax audit is only bad if you cheated on your taxes.

Your just a super underpaid cab driver and not a tax cheat. While it's super scary there's nothing to be worried about over missing expenses/revenue if it was an honest mistake.


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## Fuzzyelvis (Dec 7, 2014)

Elmo Burrito said:


> Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at.


 Sounds like you filed your taxes incorrectly is all. Do 'em again.



25rides7daysaweek said:


> I think you need an accountant
> instead of turbotax dude


HE put the numbers in turbotax.

Garbage in, garbage out.


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## Elmo Burrito (Feb 3, 2017)

There's no confusion about the numbers not matching that's obvious. I either failed to itemize those commissions taxes fees etc. or the irs failed to acknowledge them. My confusion is, as an independent contractor my 1099 from uber/lyft should only reflect the net dollars deposited into my bank account at the end of the year. When I was electrical contracting and supplied labor only no company ever submitted a 1099 that reflected anything other than the actual dollars they deposited into my bank account for such. So my question is, why does the IRS/Feds continue to this day allow uber and lyft to pad the numbers on our 1099's with all their $hit that does not actually reflect true deposited annual income from rideshare?


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## Fuzzyelvis (Dec 7, 2014)

Elmo Burrito said:


> I drove and recorded 19000 actual business miles and that's what I claimed. I'm wondering if the IRS sees ride share drivers as an easy target to shake down, and how many drivers just bend over, and pay up to make them go away. Or my lottery number came up? If I'm doing something wrong which I admit human error is always a possibility why didn't they come after me for 2018 because I used turbo for that also, and filed exactly the same way. So far nothing from them on 2018 tax return.


They don't always send every year at once. Expect more letters. A friend of mine didn't file for 8 years and then started getting random letters: like 2003, then 2001, then 2005 and so on. Weeks apart. Was weird.



Elmo Burrito said:


> There's no confusion about the numbers not matching that's obvious. I either failed to itemize those commissions taxes fees etc. or the irs failed to acknowledge them. My confusion is, as an independent contractor my 1099 from uber/lyft should only reflect the net dollars deposited into my bank account at the end of the year. When I was electrical contracting and supplied labor only no company ever submitted a 1099 that reflected anything other than the actual dollars they deposited into my bank account for such. So my question is, why does the IRS/Feds continue to this day allow uber and lyft to pad the numbers on our 1099's with all their $hit that does not actually reflect true deposited annual income from rideshare?


Because they argue that you are paid everything and you hire them to handle the transactions. So,their "commission" is a deduction.


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## Seamus (Jun 21, 2018)

Elmo Burrito said:


> There's no confusion about the numbers not matching that's obvious. I either failed to itemize those commissions taxes fees etc. or the irs failed to acknowledge them. My confusion is, as an independent contractor my 1099 from uber/lyft should only reflect the net dollars deposited into my bank account at the end of the year. When I was electrical contracting and supplied labor only no company ever submitted a 1099 that reflected anything other than the actual dollars they deposited into my bank account for such. So my question is, why does the IRS/Feds continue to this day allow uber and lyft to pad the numbers on our 1099's with all their $hit that does not actually reflect true deposited annual income from rideshare?


According to them they are a "Payment Processor" only.


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## Elmo Burrito (Feb 3, 2017)

BS


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> You might not even have to amend. Depending on the letter you may be able to submit a corrected schedule c and they will re-calculate the tax for you and either send you another bill (for less most likely) or issue you a refund. You can amend if you need to but responding to the letter is generally less expensive for you.


That has a strong likelihood to encourage one of the many and varied IRS errors they are famous for by doing this. True that they may recompute the tax, but if you do it with a 1040X you will have control.

Give IRS a chance to make an error and they will excel at doing so. There is a chance that an uncovered Schedule C would go into a shred bin. The 1040X is the best way to get rid of the problem.



Elmo Burrito said:


> There's no confusion about the numbers not matching that's obvious. I either failed to itemize those commissions taxes fees etc. or the irs failed to acknowledge them. My confusion is, as an independent contractor my 1099 from uber/lyft should only reflect the net dollars deposited into my bank account at the end of the year. When I was electrical contracting and supplied labor only no company ever submitted a 1099 that reflected anything other than the actual dollars they deposited into my bank account for such. So my question is, why does the IRS/Feds continue to this day allow uber and lyft to pad the numbers on our 1099's with all their $hit that does not actually reflect true deposited annual income from rideshare?


You are having the issue because Uber is posturing and reinforcing their claim to be a payment processor. Ironically, if you really break it out, you can turn all these "expenses" into an amount to sue them for. They are stating it is your expense, well, by what authorization did they take it? You should decide your expenses. Until then, good luck with amending your tax return. You should do fine. Your accountant should not charge you for the correction. He should have known better.


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## tohunt4me (Nov 23, 2015)

Elmo Burrito said:


> Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at.


Thats why i pay Jackson Hewitt.

The Fee is Tax Deductible.



Seamus said:


> IRS uses document matching software so if your information doesn't match the 1099 then eventually it will catch up to you so you must use the total on the 1099.
> 
> What you didn't (or don't) understand is the 1099 includes ALL the money paid to them for your rides and that is what you report as your 1099 Gross revenue on schedule C. HOWEVER, then you deduct all the money Uber and Lyft kept in fees on your schedule C so that is what you actually were paid but it's different then the 1099 amount. It works out, you just have to show it.
> 
> The good news is that as long as you used the amount you were actually paid you most likely will not owe any additional taxes. You most likely will just have to amend your return to match the 1099 gross and then deduct the service fees. If that is the only issue you file an amended return and won't owe any additional taxes. Best to see a tax professional to amend your filing.


Now
We know why the Math Teacher
Always said " SHOW THE WORK" !


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## UberTaxPro (Oct 3, 2014)

LADryver said:


> That has a strong likelihood to encourage one of the many and varied IRS errors they are famous for by doing this. True that they may recompute the tax, but if you do it with a 1040X you will have control.
> 
> Give IRS a chance to make an error and they will excel at doing so. There is a chance that an uncovered Schedule C would go into a shred bin. The 1040X is the best way to get rid of the problem.


The most recent CP2000 letters I've seen have stated that they will be looking for corrections to recompute. Having the IRS recompute is also less costly and time consuming which is usually a major concern for ride-share folks. Ever tried doing an amending return on turbo tax? For most self preparers I'd suggest sending in the corrections unless other factors necessitate a 1040X


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## Older Chauffeur (Oct 16, 2014)

tohunt4me said:


> Thats why i pay Jackson Hewitt.
> 
> The Fee is Tax Deductible.


It used to be deductible, but starting with the 2018 tax year, it was suspended through 2025.:frown:


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## UberTaxPro (Oct 3, 2014)

Older Chauffeur said:


> It used to be deductible, but starting with the 2018 tax year, it was suspended through 2025.:frown:


The business % of the fee is still deductible.:wink:


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## Older Chauffeur (Oct 16, 2014)

Sorry, my mistake. I went back and read my source again.:redface:
Thanks.


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## percy_ardmore (Jun 4, 2019)

tohunt4me said:


> Thats why i pay Jackson Hewitt.
> 
> The Fee is Tax Deductible.
> 
> ...


Not anymore since 2018.


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## tohunt4me (Nov 23, 2015)

percy_ardmore said:


> Not anymore since 2018.


I will still pay to have taxes prepared.
" Turbo Tax " cost me over $2,000.00 one year.

(Posted this way due to " 24 hr. ' Limit' )


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> The most recent CP2000 letters I've seen have stated that they will be looking for corrections to recompute. Having the IRS recompute is also less costly and time consuming which is usually a major concern for ride-share folks. Ever tried doing an amending return on turbo tax? For most self preparers I'd suggest sending in the corrections unless other factors necessitate a 1040X
> View attachment 389822


All due respect, this former IRS employee understands what they mean. You could learn not to take it so simplistically. If a 1040x is available, you put the Schedule C with it, sign the amended return, and IRS will compute the tax for you.

They say it is not necessary to amend the return if the corrections are disagreed with. The 1040x is to direct the inquiry appropriately.

IRS has a language and no glossary.


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## percy_ardmore (Jun 4, 2019)

tohunt4me said:


> I will still pay to have taxes prepared.
> " Turbo Tax " cost me over $2,000.00 one year.


That was their prep fee or did they make a colossal mistake on your return?


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## UberTaxPro (Oct 3, 2014)

LADryver said:


> All due respect, this former IRS employee understands what they mean. You could learn not to take it so simplistically. If a 1040x is available, you put the Schedule C with it, sign the amended return, and IRS will compute the tax for you.
> 
> They say it is not necessary to amend the return if the corrections are disagreed with. The 1040x is to direct the inquiry appropriately.
> 
> IRS has a language and no glossary.


I suppose that would also work. Just be sure to to write "CP2000" on the unnecessary 1040X and place it behind the necessary response letter.


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> I suppose that would also work. Just be sure to to write "CP2000" on the unnecessary 1040X and place it behind the necessary response letter.


Truly you dont know how important this procedure is. The 1040x is not to be underestimated. When future comes around it simplifies everything in historical sense. Answers get shorter, like, "Here is a copy of my amended return" (and yes, do attach the CP2000 to it, and write on the envelooe, CP2000 on the left front) instead of "Here is a copy of the letter, Schedule C, and tax assessment they sent me after I clearly showed them the right thing, and why did they ignore it? I can't afford to pay all this!" Then they get told, "Well, you didnt put it on a 1040x" Damn, it isnt complicated. The easiest form in the collection. You just want to be right. You shouldnt try to be the maverick if you want new business. Just suggest what is right, or did you speed-dial your test?

Tax Audits are folk-legendary of coming from amending a tax return, but these amendments are being "audited" when they are recieved, because someone is looking at the form and making a decision to accept it. If they do not accept it they would respond. These 1040x returns do not trigger the more pervasive office audits. Inside the IRS an audit is just someone putting eyes on the return. Millions of returns are audited without the taxpayers ever knowing it. Dont be afraid of amending a tax return. Just take steps to make sure it makes sense.

People who never worked for the IRS are at a disadvantage against someone who did. A certain tax practitioner once said he was willing to learn, instead of fixing for a prideful fight.


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## UberTaxPro (Oct 3, 2014)

LADryver said:


> Truly you dont know how important this procedure is. The 1040x is not to be underestimated. When future comes around it simplifies everything in historical sense. Answers get shorter, like, "Here is a copy of my amended return" (and yes, do attach the CP2000 to it, and write on the envelooe, CP2000 on the left front) instead of "Here is a copy of the letter, Schedule C, and tax assessment they sent me after I clearly showed them the right thing, and why did they ignore it? I can't afford to pay all this!" Then they get told, "Well, you didnt put it on a 1040x" Damn, it isnt complicated. The easiest form in the collection. You just want to be right. You shouldnt try to be the maverick if you want new business. Just suggest what is right, or did you speed-dial your test?
> 
> Tax Audits are folk-legendary of coming from amending a tax return, but these amendments are being "audited" when they are recieved, because someone is looking at the form and making a decision to accept it. If they do not accept it they would respond. These 1040x returns do not trigger the more pervasive office audits. Inside the IRS an audit is just someone putting eyes on the return. Millions of returns are audited without the taxpayers ever knowing it. Dont be afraid of amending a tax return. Just take steps to make sure it makes sense.
> 
> People who never worked for the IRS are at a disadvantage against someone who did. A certain tax practitioner once said he was willing to learn, instead of fixing for a prideful fight.


Underestimate the almighty power of the 1040X? Never! I'll file them all day long if someone is willing to pay for it! But why incur the expense of a 1040X if it's not needed? Is that being a Maverick? 
You're right, it isn't complicated. Read the letter. Respond to the letter following the instructions in the most efficient way.
Not looking for any kind of fight prideful or whatever, just disagree with you on how a rideshare driver might want to to handle a CP2000 notice.


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> Underestimate the almighty power of the 1040X? Never! I'll file them all day long if someone is willing to pay for it! But why incur the expense of a 1040X if it's not needed? Is that being a Maverick?
> You're right, it isn't complicated. Read the letter. Respond to the letter following the instructions in the most efficient way.
> Not looking for any kind of fight prideful or whatever, just disagree with you on how a rideshare driver might want to to handle a CP2000 notice.


He said he has an accountant, and incidentally one liable for the error if it isnt fixed. As for costs, doing something right with educated eyes is worth more than doing it wrong for free. He is that universal being, a Taxpayer. Rideshare is like cabs or car services Nothing new. All the processes in IRS Service Centers are the same for everyone. BTW, in my private practice years tax returns original or amended were billed $125 to $1500. My hourly billing was between $45 to $60 before TRA86. I used to correct tax returns prepared by others. I am trying to help here, and you are full of money hungry ego. I think you are not even a driver yourself. You should pay for your advertising.


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## dirtylee (Sep 2, 2015)

I dont bother with taxes. Too poor.


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## LD598 (Aug 24, 2016)

LADryver said:


> I am trying to help here, and you are full of money hungry ego. I think you are not even a driver yourself. You should pay for your advertising.


Wow. Sensitive much? The guy you're criticizing has arguably provided more value to this sub forum than any other individual. I think he's earned the right to a little self-promotion.


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## LADryver (Jun 6, 2017)

LD598 said:


> Wow. Sensitive much? The guy you're criticizing has arguably provided more value to this sub forum than any other individual. I think he's earned the right to a little self-promotion.


He is often wrong. But you would not know that.


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## UberTaxPro (Oct 3, 2014)

LADryver said:


> He said he has an accountant, and incidentally one liable for the error if it isnt fixed. As for costs, doing something right with educated eyes is worth more than doing it wrong for free. He is that universal being, a Taxpayer. Rideshare is like cabs or car services Nothing new. All the processes in IRS Service Centers are the same for everyone. BTW, in my private practice years tax returns original or amended were billed $125 to $1500. My hourly billing was between $45 to $60 before TRA86. I used to correct tax returns prepared by others. I am trying to help here, and you are full of money hungry ego. I think you are not even a driver yourself. You should pay for your advertising.


You should read more carefully, he said he used turbo tax.


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> You should read more carefully, he said he used turbo tax.


He said his accountant put it into turbo tax. at any rate, it is suitable to recommend the use of a tax professional. Yes, instead of jeririgging a self-fix. The IRS is not kidding.


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## UberTaxPro (Oct 3, 2014)

LADryver said:


> He said his accountant put it into turbo tax. at any rate, it is suitable to recommend the use of a tax professional. Yes, instead of jeririgging a self-fix. The IRS is not kiddibg.


You should know better than anyone that accountants don't use turbo tax! Following the instructions is far from jerryrigging a fix! Here's his post by way...doesn't say a word about an accountant.

"Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at."


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> You should know better than anyone that accountants don't use turbo tax! Following the instructions is far from jerryrigging a fix! Here's his post by way...doesn't say a word about an accountant.
> 
> "Received a letter from IRS saying I owed them for $4000 from 2017 because Uber and Lyft included all their friggin credit card transactions, commissions, taxes and airport fees on my 1099. I used turbo tax and apparently the only number the IRS looks at is what Uber/Lyft reported on the 1099. How long will Uber/Lyft get away with this BS (Bernie Sanders)? This is so unethical putting all their fees on the backs of us drivers just so they can reduce their quarterly tax liability. Shame shame shame! Just one more thing you guys suck at."


I reread some posts, and it was implied but misinterpreted through exchanges. But really, the instructions are not IKEA assemblies. Since IRS hss issued the CP2000 they will issue one to everyone who made thre same mistake. People try to go it alone without the training. If you have had training and did more than stumble into four passed tests, then you know it isnt for the meek. Nobody has to go to expensive Optima, they can go to anyone with a sign displayed and is an EA and also preferably former IRS (who are the best for obvious reasons), and begin their relationship with a true peace about their taxes.

it does not matter if Kermit the Frog did the original return. But someone who knows what they are doing and why they are doing it needs to be consulted instead of trying to do it themselves. Nothing stops someone ftom holding themselves out as a professional and using turbo tax. They would just sign the return, is all. Tax Preparers used computer processing of tax returns before there was the internet.


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## UberTaxPro (Oct 3, 2014)

LADryver said:


> I reread some posts, and it was implied but misinterpreted through exchanges. But really, the instructions are not IKEA assemblies. Since IRS hss issued the CP2000 they will issue one to everyone who made thre same mistake. People try to go it alone without the training. If you have had training and did more than stumble into four passed tests, then you know it isnt for the meek. Nobody has to go to expensive Optima, they can go to anyone with a sign displayed and is an EA and also preferably former IRS (who are the best for obvious reasons), and begin their relationship with a true peace about their taxes.
> 
> it does not matter if Kermit the Frog did the original return. But someone who knows what they are doing and why they are doing it needs to be consulted instead of trying to do it themselves. Nothing stops someone ftom holding themselves out as a professional and using turbo tax. They would just sign the return, is all. Tax Preparers used computer processing of tax returns before there was the internet.


TurboTax is only licensed for personal use. Also, I believe that IRS regulations prohibit its use by paid preparers.


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## LADryver (Jun 6, 2017)

UberTaxPro said:


> TurboTax is only licensed for personal use. Also, I believe that IRS regulations prohibit its use by paid preparers.


Xerox gets credit for photocopies. Kinkos gets credit for Fedex Office. Kleenex is all tissues in the world. And on and on Nobody holds it as literal that computer software was Turbo Tax. There are also companies hosting online or proprietary tax prep. All the client knows is it is a computer program. Anything can be called Turbo Tax.


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## Older Chauffeur (Oct 16, 2014)

LADryver said:


> Xerox gets credit for photocopies. Kinkos gets credit for Fedex Office. Kleenex is all tissues in the world. And on and on Nobody holds it as literal that computer software was Turbo Tax. There are also companies hosting online or proprietary tax prep. All the client knows is it is a computer program. Anything can be called Turbo Tax.


Sorry, but this is a weak argument. The OP specifically named TurboTax, he didn't imply it.


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## LADryver (Jun 6, 2017)

Older Chauffeur said:


> Sorry, but this is a weak argument. The OP specifically named TurboTax, he didn't imply it.


Your point being? Let me try. On one hand is a 12000k tax bill (first the CP2000 for 5000-ish of income omitted from the tax return "Understatement of income". Then when the next notice comes it is the formal assessment, which adds penalties and interest. Penalties like "Substantial understatement of income", " Intentional Omission", Late payment penalty, Underpayment of Estimated Tax penalty, and interest from April of 2018). After all is rolled up the tax becomes the smaller item. All that, versus, whose toilet paper do you prefer, Charmin or the store brand?

The object of the exercise is not to get the assessment.


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## Older Chauffeur (Oct 16, 2014)

I wa


LADryver said:


> Your point being? Let me try. On one hand is a 12000k tax bill (first the CP2000 for 5000-ish of income omitted from the tax return "Understatement of income". Then when the next notice comes it is the formal assessment, which adds penalties and interest. Penalties like "Substantial understatement of income", " Intentional Omission", Late payment penalty, Underpayment of Estimated Tax penalty, and interest from April of 2018). After all is rolled up the tax becomes the smaller item. All that, versus, whose toilet paper do you prefer, Charmin or the store brand?
> 
> The object of the exercise is not to get the assessment.


My point was in reference to your post, which I quoted.


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