www.businessinsider.com
You oppose e-Verify why?
People are getting taxed for gig work they've never done
Uber and DoorDash have been sending tax forms to people who have never worked for the gig delivery services. One potential cause: recent hacks.
We inadvertently created a set of jobs where there's an equivalent to the e-Verify system. We got the expected result--a lot of people working under stolen identities. We can't solve illegals working without solving identity theft.
She must have had some very significant other income, to be paying over 47% in taxes. The top marginal rate for an individual is 37%...
Assuming DoorDash reports the same way as Uber -- on a 1099 -- they won't have withheld Social Security or Medicare taxes. So the IRS bill would have included that.
… and if she was already making over a half mil/yr she’d be in the 37% range, plus 7% or so … then penalties … maybe.
The IRS isn't paid to believe or disbelieve; it's paid to feed data into computers and follow up on discrepancies. When the computer hiccups they automatically send the taxpayer a bill, and if it's bogus then the taxpayer will push back. Eventually a human will think about a case, but what we're seeing in this thread hasn't got that far into the process. But that said...
The IRS is comprised of people, and they are paid to determine the truth of who owes what. You don’t really think they collected that 10k, do you? My accountant talked them out of fining me for an honest mistake one time. Had to pay the amount plus interest but they waived the penalty, determining it was a one-off oversight. If that lady had to pay, she needs a new accountant.
Certainly. She didn't have to pay; the IRS determined it was identity theft and withdrew the charge. But that took them three months. They determine the truth of who owes what afterwards; it doesn't enter into the initial decision to send people bills. The IRS is by design a ready-fire-aim organization. (And assuming taxpayer error is far more common than identity theft, that's probably the most efficient way for it to operate.) The point is, I don't see any sign that the article is not quite on the level -- it would be surprising if incidents like this didn't occur from time to time.
The point is the current system doesn't stop them from working, it simply forces them to work under stolen identities. The "solution" adds to the problem.You oppose e-Verify why?People are getting taxed for gig work they've never done
Uber and DoorDash have been sending tax forms to people who have never worked for the gig delivery services. One potential cause: recent hacks.
We inadvertently created a set of jobs where there's an equivalent to the e-Verify system. We got the expected result--a lot of people working under stolen identities. We can't solve illegals working without solving identity theft.
The current weak system is not good enough, so you want to get rid of it?
How about bolster and strengthen it?
Wouldn't that be better than throwing up your hands and pretending that there's no solution?
Tom
Quite possible. Since the article refers to his wife I'll figure they're married filing joint. That puts their household income somewhere between $364,201 and $462,500. Since it's self-employment work they owe the whole 15.3% FICA, for a marginal rate of slightly under 47.3%.
Only need 32% + FICA and no penalties to get the numbers involved.
Didn't notice the stay-at-home part, yeah, it's not unreasonable for the IRS to think she might have been doing DoorDash.
My mother fell victim to this in the 80s--and the IRS wasn't nearly so reasonable. I went off to college before it was resolved and never learned how it turned out.
