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Do self employed workers lie when reporting their income on their taxes?
I ask because I am waiting on my 1099 for driving UBER and LYFT and was told I may not get one since I am self employed. I was told to report how much I made.
However, I wonder if there is no record, do people lie and report less than they actually got paid? In order to avoid owing the government? I think this is not fair for the honest people who actually report what they really made during the year.
11 Answers
- Max HooplaLv 73 years ago
Your income is set in stone and it doesn't take much to determine your fare miles or fees to Uber. The only things that are subject to manipulation and stuff you have for customers and dead headng
- ?Lv 73 years ago
People try to lie all of the time and honestly, most of the time, the government already knows your numbers before you send in your return...
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- Elaine MLv 73 years ago
Self employed people are looked at hard by the IRS, anything that raises red flags will cause an audit.
- Anonymous3 years ago
Sure, people commit tax evasion all the time. And sometimes they don't get caught.
And sometimes they do get caught and strung up by their thumbs.
There are so many ways for the IRS to catch on. They can do a bank deposit analysis, a lifestyle audit where they see someone reporting $20,000 income and driving a $50,000 car, their employer or contractor gets audited which leads to the people they paid, the individual gets audited, and the list goes on.
Personally, I think my taxes are way too high and I hate working my butt off so freeloaders can get free freebies, but I pay my taxes.
And I sleep very well at night.
- curtisports2Lv 73 years ago
Do you get paid directly by passengers or do you get paid through Uber and Lyft? If you are paid through the companies or applications set up by them, they OWE you a 1099. Contact the IRS if they will not cooperate. If they aren't issuing 1099s but are paying you through their application-based system, then they are probably not reporting all of what they're taking in, either, making everybody involved a tax cheat.
So, you are correct. Many self-employed people fudge the numbers.
- ChristineLv 53 years ago
If you are getting paid in cash, then there's always the opportunity to not report it. Vending machine companies sometimes do this. But if you must keep track of your mileage, then the IRS is going to wonder why you are making less money than you should for the miles you recorded (or that are on your odometer). Credit payments leave an electronic trail and the IRS can track this if they decide to audit you. It is always better to be honest and to keep exact records. Then you have nothing to fear from the IRS.
