Los Angeles riders, along with people across the country, are opening their mail to find IRS tax forms insisting they earned money driving for Uber even though they never signed up to drive. The flood of bad 1099s has victims and attorneys warning that stolen identities may be fueling fake driver accounts, which in turn is sparking fresh worries about passenger safety.
A CBS News California Investigates report uncovered multiple people who received IRS Form 1099s listing Uber income despite never driving, including a Woodland Hills couple who were sent a form claiming nearly $7,000 in earnings over just two months. After that first report aired, dozens more viewers reached out to CBS News with similar stories.
Uber told CBS News it is "thoroughly investigating every report we receive." The company says it permanently bans any accounts it finds to be fraudulent and has submitted corrected 1099s that show $0 income for people who were wrongly reported as drivers.
How Big Is This Problem?
A Freedom of Information Act request turned up 354 complaints to the Federal Trade Commission since 2020 from people who say Uber issued them 1099s in error, according to Spectrum News. That same report notes the FTC logged over one million identity theft reports in 2024, a sign that tax-related identity fraud is on the rise nationwide.
Lawyers, Lawsuits And Tax-Time Chaos
A proposed class action filed in October 2024 accuses Uber of filing tax returns that listed people as independent contractors even though they never worked for the platform, according to ClassAction.org. Consumer attorney Todd Friedman says his office has been "inundated with hundreds of calls" from people who believe they were swept up in the mess, a surge that local outlets, including Spectrum News, have highlighted.
Where Uber's Verification Can Break Down
Legal filings and experts say the background checks and ID uploads that rideshare companies use can be sidestepped when criminals plug in stolen Social Security numbers or forged documents. A 9th Circuit MDL opinion and related court filings spell out some of those screening gaps (court record). Uber says it is rolling out more real-time ID checks and "intelligent" fraud monitoring to catch account sharing and made-up identities in a program detailed by Uber.
If A Mystery 1099 Lands In Your Mailbox
The IRS advises victims to file an Identity Theft Affidavit (Form 14039) and, when appropriate, request an Identity Protection PIN. The agency also directs people to IdentityTheft.gov for a step-by-step recovery plan. If the incorrect 1099 came from Uber, the company instructs people to upload supporting documents through Uber, then file a police report, and consider freezing their credit while the platform and tax authorities untangle the records.
Why Riders Should Care
Consumer advocates and some court complaints say this pattern undercuts the apps' pledge that drivers are thoroughly vetted, and that weak verification can spill over into real-world safety risks for riders. Plaintiffs and safety advocates point to litigation and reporting as evidence that the screening systems need to be tightened, per ClassAction.org and court records.
As tax season unfolds, these surprise 1099s are exposing a fresh front in identity fraud that can trigger both financial headaches and safety concerns. For anyone caught in the crosshairs, keeping copies of any unexpected tax forms, following IRS and FTC guidance, and contacting the platform that issued the document are key first steps while law enforcement and tax agencies investigate.
