Uber Class Action: Did You Get Taxed for Rides You Didn't Drive?

Case Overview: A class action lawsuit has been filed against Uber, alleging that the company filed false tax information for individuals who never worked as Uber drivers.

Consumers Affected: Individuals who were incorrectly reported as Uber drivers and received tax bills for income they never earned.

Court: U.S. District Court for the Eastern District of California

Uber submitted false tax information to the IRS for people who never worked at the company, resulting in them being charged tens of thousands of dollars, a new lawsuit alleges.

The lawsuit claims that Uber allowed drivers to use stolen personal information to work under false identities, leading to unknowing individuals being stuck with tax bills for income they never received.

Uber Accused of Filing False Tax Information, Harming Consumers

Jose Gonzalez, a resident of Kern County, California, filed the proposed class action lawsuit against the rideshare giant after he received a 1099-MISC tax form in 2020, showing he had earned approximately $6,000 as an Uber contractor. 

However, Gonzalez had never worked for Uber or received any payments from the company, the lawsuit states. After filing an identity theft report with the Federal Trade Commission, he contacted Uber for clarification but was given the run-around with no resolution.

In August 2021, Gonzalez received another shock—a notice from the IRS stating he owed $22,000 in unpaid taxes for income Uber reported on a 1099-K form, claiming he earned over $53,000 in 2019. Despite never working for Uber, he spent the next year battling the IRS to correct the false claims, eventually filing an identity theft affidavit. 

Then in 2024, the California Franchise Tax Board notified Gonzalez he owed another $3,600 in back taxes due to Uber's false reports. The lawsuit alleges that Uber failed to verify the identities of its drivers, allowing someone to use Gonzalez's information to work as a driver and leaving him with the financial consequences.

The legal and financial consequences have been overwhelming for Gonzalez, the lawsuit states, and he has spent years trying to resolve the issue, filing identity theft reports and affidavits with both the IRS and the California Franchise Tax Board. Gonzalez argues that proper identity verification by Uber could have prevented the problem.

Uber's Independent Contractor System Under Scrutiny

This lawsuit comes amid ongoing scrutiny of Uber's classification of drivers as independent contractors. In states like California, New York, and Washington, legal battles have challenged this system, arguing that drivers should be classified as employees, which would entitle them to benefits like healthcare, sick leave, and minimum wage protections.

In a significant victory for Uber, the California Supreme Court recently upheld Proposition 22, a ballot measure that ensures drivers remain classified as independent contractors. The ruling allows Uber and similar companies to maintain flexibility in their business models while offering drivers certain benefits. 

In other states, Uber has struck deals with lawmakers and unions to create hybrid models, such as in Washington, where drivers maintain their contractor status while receiving minimum wages and paid family leave.

Uber Faces Multiple Legal Challenges Over Labor and Consumer Protection Issues

Uber is no stranger to legal challenges. As Forbes reports, the company has faced numerous lawsuits over the years, ranging from tax issues to allegations of violating labor laws and disability rights. One of the most publicized legal battles involves claims of sexual assault by passengers, who argue that Uber’s policies contributed to unsafe conditions for riders. 

The company has also faced allegations of withholding taxes and failing to provide legally required benefits to drivers in New York.

In another case, the U.S. government sued Uber for charging extra fees to passengers with disabilities, a violation of the Americans with Disabilities Act (ADA). Additionally, Uber is facing an antitrust lawsuit in California, where drivers allege the company illegally manipulates prices—a practice allowed only if drivers are classified as employees.

While some of these lawsuits have been settled, others, like the one filed by Gonzalez, are ongoing. In his lawsuit, Gonzalez wants to represent people from across the country affected by Uber’s alleged false tax reporting. He is seeking damages, fees, and costs.

Case Details

• Lawsuit: Gonzalez v. Uber Technologies, Inc
• Case Number: 1:24-At-00803
• Court: U.S. District Court for the Eastern District of California

Plaintiffs' Attorneys

• Todd. M. Friedman, Esq. (Todd M. Friedman)

Have you experienced similar tax issues with Uber or other gig economy companies? Share your experiences and thoughts in the comments below.