# Congress: The tax man may be coming for Uber and Lyft drivers



## FormerTaxiDriver♧ (Apr 5, 2018)

Posted May 20, 2019 9:31 AM

Between the lackluster initial public offerings and struggles to turn a profit, ride-sharing services such as Uber and Lyft aren't short of problems. Now, Congress is threatening to make it more difficult for them to retain drivers who are already outraged over low wages.

The IRS believes many Uber and Lyft drivers are cheating on their taxes, and Sen. John Thune, R-S.D., is pushing legislation that would dramatically reduce the income threshold above which gig economy companies that rely on contractors must report to the IRS.

Read more in link...
https://www.rollcall.com/news/congress/tax-man-may-coming-uber-lyft-drivers


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## losiglow (Dec 4, 2018)

I'm not sure how you'd be able to underreport earnings (with exception to cash tips). Doesn't the IRS receive a copy of the 1099 that U/L provides the drivers? I've gotten 1099's from other sources before and failed to include them in my taxes, only to have the IRS send a letter informing me that I owe more taxes due to not factoring in that income.


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## Pax Collector (Feb 18, 2018)

Direct link:

https://www.rollcall.com/news/congress/tax-man-may-coming-uber-lyft-drivers
I see a lot of audits and such but as long as one is properly tracking their expenses they'll be fine.


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## peteyvavs (Nov 18, 2015)

FormerTaxiDriver♧ said:


> Posted May 20, 2019 9:31 AM
> 
> Between the lackluster initial public offerings and struggles to turn a profit, ride-sharing services such as Uber and Lyft aren't short of problems. Now, Congress is threatening to make it more difficult for them to retain drivers who are already outraged over low wages.
> 
> ...


I thought Republicans were against taxes, guess only for the rich.


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## ABC123DEF (Jun 9, 2015)

Yes...we're just swimming in loads of cash here. I should be able to retire rich in the next oh...NEVER!? 

Maybe this time could be better spent in chasing where the REAL money might be hidden? This is almost laughable. -o:


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## 1.5xorbust (Nov 22, 2017)

The IRS should be chasing the Trumps of the world for taxes and not u/l drivers.


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## IR12 (Nov 11, 2017)

FormerTaxiDriver♧ said:


> Posted May 20, 2019 9:31 AM
> 
> Between the lackluster initial public offerings and struggles to turn a profit, ride-sharing services such as Uber and Lyft aren't short of problems. Now, Congress is threatening to make it more difficult for them to retain drivers who are already outraged over low wages.
> 
> ...


What could possibly be more backwards?


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## Wolfgang Faust (Aug 2, 2018)

Pax Collector said:


> Direct link:
> 
> https://www.rollcall.com/news/congress/tax-man-may-coming-uber-lyft-drivers
> I see a lot of audits and such but as long as one is properly tracking their expenses they'll be fine.


They should focus on Amazon and Fascistbook paying taxes!


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## Fozzie (Aug 11, 2018)

Reaffirmation that the GOP is as deplorable as the democrats. The only difference between the two is the side of their asses from which lies are spewed.


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## Wolfgang Faust (Aug 2, 2018)

The last democrat to cut taxes was JFK.
If he was alive today, he'd be a republican, and the democrats would call him racist.


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## Nerka (Jul 7, 2017)

Wolfgang Faust said:


> The last democrat to cut taxes was JFK.
> If he was alive today, he'd be a republican, and the democrats would call him racist.


Back in his day the marginal tax rates were exceptionally high. At present the marginal tax rates are near record lows, so not sure that is an appropriate comparison. Also, at the time JFK ran, there was a great deal of Catholic animosity, the equivilence of racism in it's time - so no, I don't think that is an apt comparison.


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## UberTrent9 (Dec 11, 2018)

1.5xorbust said:


> The IRS should be chasing the Trumps of the world for taxes and not u/l drivers.


Hasn't he paid his taxes? And without fail, some butthurt person HAS to mention his name.


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## TampaGuy (Feb 18, 2019)

I report all earnings including cash tips.


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## FormerTaxiDriver♧ (Apr 5, 2018)

Glad that I tracked my miles on the Schedule C deduction. Both years were at a loss.

Many of you guys are in BIG trouble.


?


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## Munsuta (May 4, 2019)

Fear is the mind killer. After reading this article I wonder how many drivers on here had their butt pucker up. I suspect this article is just fear porn. I see the for sale sign but im not buying it. You can save all your receipts and it will all be for nothing, you will never see the IRS coming to audit you. They will audit strippers before they audit Uber drivers.


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## Wasted_Days (Aug 15, 2017)

100% non-issue if you're playing by the rules.


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## FormerTaxiDriver♧ (Apr 5, 2018)

Munsuta said:


> Fear is the mind killer. After reading this article I wonder how many drivers on here had their butt pucker up. I suspect this article is just fear porn. I see the for sale sign but im not buying it. You can save all your receipts and it will all be for nothing, you will never see the IRS coming to audit you. They will audit strippers before they audit Uber drivers.


*Consider the source*

THE SOURCE FOR NEWS ON CAPITOL HILL SINCE 1955, 1201 Pennsylvania Ave NW, 6th floor Washington, D.C. 20004 

CQ Roll Call is a part of FiscalNote, the leading technology innovator at the intersection of global business and government. Copyright 2019 CQ Roll Call. All rights reserved


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## Bob Reynolds (Dec 20, 2014)

Congress is probably just figuring out that Lyft and Uber do not pay taxes and they have put all the transportation companies out of business that used to pay taxes.


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## TheDevilisaParttimer (Jan 2, 2019)

Sounds like the tax man is setting himself up for disappointment.... there is no money in rideshare no matter what type of wig Uber tries to put on it.


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## Lee239 (Mar 24, 2017)

The biggest cheat is people are not paying and reporting their self employed FICA taxes and Uber doesn't care because you are not an employee and they don't have to withhold them or pay into it.


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## My3centsSuperbowl (May 20, 2019)

Well with the below minimum wage incomes, there's really not that much to tax. It would be far more lucrative for the IRS to go after the bigwigs, even if they had to deal with their high powered tax attorneys.


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## oldfart (Dec 22, 2017)

The issue is, I think, that Uber, as a third party payment processor only provides a 1099 when you have at least 200 transactions and over $20000

Those that do less than that do not get a 1099. And many subscribe to the theory that if there is no 1099, it dosent exist

And that no doubt bothers the irs


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## JustTreatMeFair (Nov 28, 2017)

It is amazing the number of gullible people in the world that fall for the advertising Uber and LYFT put out that anyone can actually make real money driving for them. They have even convinced the IRS drivers are banking without paying their fair share.


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## IR12 (Nov 11, 2017)

Bob Reynolds said:


> Congress is probably just figuring out that Lyft and Uber do not pay taxes and they have put all the transportation companies out of business that used to pay taxes.


How about all the IRS employees that cheat or do not pay their taxes?


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## wicked (Sep 24, 2017)

Socialism for the rich, capitalism for the poor.


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

This is actually GOOD NEWS.

They more they dig into the economic realities and discover that there’s no actual profit to tax the faster they can work to fix the actual problems.


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## Ssgcraig (Jul 8, 2015)

FormerTaxiDriver♧ said:


> Posted May 20, 2019 9:31 AM
> 
> Between the lackluster initial public offerings and struggles to turn a profit, ride-sharing services such as Uber and Lyft aren't short of problems. Now, Congress is threatening to make it more difficult for them to retain drivers who are already outraged over low wages.
> 
> ...


I thought it was $600, is the $20K something else?



wicked said:


> Socialism for the rich, capitalism for the poor.


You have that backwards.


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## mmn (Oct 23, 2015)

Ssgcraig said:


> I thought it was $600, is the $20K something else?


The $600 is promo income. $20k is driving.

But as said, because you didn't get a 1099 only means your income wasn't reported to the IRS. It does not mean that income isn't taxable. If you are audited and you can't prove you had 0 tax liability, you will have to pay those taxes plus interest and a possible penalty.


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## Ssgcraig (Jul 8, 2015)

mmn said:


> The $600 is promo income. $20k is driving.
> 
> But as said, because you didn't get a 1099 only means your income wasn't reported to the IRS. It does not mean that income isn't taxable. If you are audited and you can't prove you had 0 tax liability, you will have to pay those taxes plus interest and a possible penalty.


I have got a 1099 every year, first couple years was under $5K each year.


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## oldfart (Dec 22, 2017)

It’s $20000 and 200 transactions that triggers a 1099k

And that’s exactly what it was when I used PayPal to handle some of the payments for a business I sold a few years ago. I always had over $20000 but never more than 200 transactions. So PayPal didn’t generate a 1099

The rules are that you have to declare that income but the irs knows that many people don’t. So, I’m not surprised that they are looking for a way to “see” all that income


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## Michael1230nj (Jun 23, 2017)

Great idea go after less then minimum wage workers. Half of the Drivers being sent to Jail would be a lifestyle improvement.


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## Seamus (Jun 21, 2018)

FormerTaxiDriver♧ said:


> Posted May 20, 2019 9:31 AM
> 
> Between the lackluster initial public offerings and struggles to turn a profit, ride-sharing services such as Uber and Lyft aren't short of problems. Now, Congress is threatening to make it more difficult for them to retain drivers who are already outraged over low wages.
> 
> ...


THE ISSUE:
For tax purposes, Uber, Lyft, and many other app based companies (such as Arbnb) consider themselves to be "Payment Processors" only and that is why you specifically get a 1099K. The 1099K designation applies to Payment Processors.

With the legal Payment Processor designation these companies don't have to issue a 1099K unless you have received over $20,000. from them. If YOU receive a 1099K it means they have filed a 1099K with the govt so if you don't declare the income they will easily catch you.

For those that receive less than $20,000 from them, you do not receive a 1099K, you just received an income summary from them. The IRS has no idea you received money from U/L if a 1099K wasn't filed. In the case of no 1099K being filed it becomes simply the "honor" system. You can bet their are a lot of people who therefore do not include their U/L earnings as income and effectively therefore pay no income taxes on their earnings.

The IRS isn't stupid and realize this is occurring. You don't need any new legislation, all you need is to take away the "Payment Processor" only status of these app based companies, U/L included. There are several different 1099 classifications and they have different threshold requirements for issuing purposes. In my business I have to issue a 1099 to anyone who we pay more than $600 in a year to.

If U/L and other app companies had their designation changed requiring them to issue a 1099 for anyone who got over $600 then the issue is resolved and the IRS would know who was receiving money from U/L and is not reporting it.

This whole issue has nothing to do with taxing drivers more, just ensuring Uber is reporting it properly and drivers are declaring their income. Simple.


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## Steve_TX (Feb 2, 2016)

Stevie The magic Unicorn said:


> ...the faster they can work to fix the actual problems.


Name one problem the IRS has fixed for the taxpayer? Go ahead, just name one and I'll give you my car.


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## My3centsSuperbowl (May 20, 2019)

Steve_TX said:


> Name one problem the IRS has fixed for the taxpayer? Go ahead, just name one and I'll give you my car.


hmmmmm


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## nouberipo (Jul 24, 2018)

1.5xorbust said:


> The IRS should be chasing the Trumps of the world for taxes and not u/l drivers.


they are chasing those who they know have no voice, no power, and will be the least resistant to threats....in other words, drivers. Meanwhile you have the President and the millionaire policy-makers not paying their share of taxes but since they are protected (via lawyers and laws they create) they have nothing to worry about. It is really difficult to operate in a country in which lawlessness is now the norm for those who can afford it but when it comes to the working class more laws are created to keep them down. With that said, nearly half of Americans support this through supporting the current so called president and his congressional cronies so you make your bed (and you make it for everyone) you sleep in it.



My3centsSuperbowl said:


> hmmmmm





Lee239 said:


> The biggest cheat is people are not paying and reporting their self employed FICA taxes and Uber doesn't care because you are not an employee and they don't have to withhold them or pay into it.


No the biggest cheat is the President and his millionaire congresional cronies who don't pay any taxes because they can afford lawyers who know how to navigate the very laws congress passes. Uber drivers have ZERO influence on any politicians but I guarantee Uber/Lyft have GREAT influence on lawmakers as they have powerful lobbyists that are by default against anything that will help the drivers.


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## FormerTaxiDriver♧ (Apr 5, 2018)

Not sure what you mean by weak drivers and the like, in comparison to polititians. I have attorneys speaking for me.


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## Ssgcraig (Jul 8, 2015)

nouberipo said:


> they are chasing those who they know have no voice, no power, and will be the least resistant to threats....in other words, drivers. Meanwhile you have the President and the millionaire policy-makers not paying their share of taxes but since they are protected (via lawyers and laws they create) they have nothing to worry about. It is really difficult to operate in a country in which lawlessness is now the norm for those who can afford it but when it comes to the working class more laws are created to keep them down. With that said, nearly half of Americans support this through supporting the current so called president and his congressional cronies so you make your bed (and you make it for everyone) you sleep in it.
> 
> 
> No the biggest cheat is the President and his millionaire congresional cronies who don't pay any taxes because they can afford lawyers who know how to navigate the very laws congress passes. Uber drivers have ZERO influence on any politicians but I guarantee Uber/Lyft have GREAT influence on lawmakers as they have powerful lobbyists that are by default against anything that will help the drivers.


Congress has not time for Uber drivers, they spend all thier time on questioning everyone the president has ever known. Ass clowns need to pass the budget prior to 1 October.


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

Steve_TX said:


> Name one problem the IRS has fixed for the taxpayer? Go ahead, just name one and I'll give you my car.


What do you think is going to happen when the IRS discovers that the uber/lyft drivers are un-taxable by their own policies?


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## 142605 (Mar 4, 2018)

UberTrent9 said:


> Hasn't he paid his taxes? And without fail, some butthurt person HAS to mention his name.


No, he didn't. That's the point.


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## Nerka (Jul 7, 2017)

UberTrent9 said:


> Hasn't he paid his taxes? And without fail, some butthurt person HAS to mention his name.


True, there is no need to mention him on this thread. But in reply to you we don't know if he has paid his taxes since he has not released his returns.


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## Matt Uterak (Jul 28, 2015)

Pax Collector said:


> Direct link:
> 
> https://www.rollcall.com/news/congress/tax-man-may-coming-uber-lyft-drivers
> I see a lot of audits and such but as long as one is properly tracking their expenses they'll be fine.


The IRS has been bleeding auditors for about 10 years.



Stevie The magic Unicorn said:


> What do you think is going to happen when the IRS discovers that the uber/lyft drivers are un-taxable by their own policies?


If you are referencing the lack of a 1099, you are mistaken.

The creation/issuance of a 1099 does not make income taxable or not taxable. The rules surrounding when an entity has to produce a 1099 are balance of practical considerations. Every regulation/law impacts a business. Theory and reality diverge in most cases.

The IRS already ignores 2-6 million cash based small businesses annually, I doubt anyone at IRS or in Congress has the appetite for running down drivers or fire bugs or alcoholic handymen.


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## Ubermcbc (Sep 25, 2016)

FormerTaxiDriver♧ said:


> Posted May 20, 2019 9:31 AM
> 
> Between the lackluster initial public offerings and struggles to turn a profit, ride-sharing services such as Uber and Lyft aren't short of problems. Now, Congress is threatening to make it more difficult for them to retain drivers who are already outraged over low wages.
> 
> ...


Awesome. Great to hear that IRS and the legislature believes ridershare drivers cheating on their earning. Bawhahaha. Let them dig in. We will all hear apology in the news, my bad. Lol.


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## nouberipo (Jul 24, 2018)

Ssgcraig said:


> Congress has not time for Uber drivers, they spend all thier time on questioning everyone the president has ever known. Ass clowns need to pass the budget prior to 1 October.


please use correct spelling if you are going to attempt a credible post. "All thier time"? Do you mean 'their'? As for the content, I was so distracted by the spelling error that I didn't even bother reading the rest of the post.


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## Ssgcraig (Jul 8, 2015)

nouberipo said:


> please use correct spelling if you are going to attempt a credible post. "All thier time"? Do you mean 'their'? As for the content, I was so distracted by the spelling error that I didn't even bother reading the rest of the post.


Are you serious about misspelling their? That's what distracted you? You wasted time to post that I misspelled a word. Wow, trolls are in full force.


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