Do Uber, Lyft and other rideshare drivers actually pay their taxes?
The Guru Take
Of course they do!
I assume you are asking this question because you suspect Uber drivers are prone to evading taxes. Perhaps you are comparing their job to other professions such as waiter/waitress or taxi driver who traditionally handled lots of cash transactions.
Yes, contrary to what you believe, Uber drivers do pay their taxes. For one, there are very few cash transactions while driving an Uber (if any), and everything is all documented. For two, Uber sends out the tax form, 1099s, which indicate how much each driver makes.
All 1099s are also submitted to the IRS (as part of 1065), so the IRS is aware of the drivers’ income. So, you really need to report your income or the authorities will know.