A B-Notice is a warning from a payer to a payee to update their tax information on file with the payer because it does not match the records of the Internal Revenue Service (IRS). Typically, payees have a few weeks to update or validate their tax information. If they fail to update their information in time, the payer is required to begin withholding at a 24% flat rate. The withholding, known as "backup withholding", is remitted to the IRS. The withholding taxes are reported to the payee and the IRS on a Form 1099. Form 1099s are typically due by January 31 of the following year.
If you're an earner on the Uber platform and you've received a B-Notice, then you can update your tax information in Tax Settings, which can be accessed by logging into the Driver Portal on a desktop computer at the link below:
To be valid, your tax information must include your name and taxpayer identification number, as they appear on your tax return. If you operate under a legal entity, such as an LLC, S-Corporation or C-Corporation, you'll likely need to provide that entity's legal name and taxpayer identification number (e.g. your Employer Identification Number (EIN)). If you operate as a Sole Proprietor or as an LLC with a single member, then you can provide your First and Last Name and Social Security Number (SSN).
If you do this within the grace period mentioned in the B-Notice, Uber will not apply backup withholding from your earnings. If you do this after the grace period and continue to earn on the platform, Uber will begin withholding 24% from your earnings. These amounts will be reported to you and the IRS on a Form 1099.
Uber will stop backup withholding after you provide updated and valid tax information. If you previously supplied tax information and believe it to be accurate, then you can validate the information by saving the Digital W9 Form under Tax Settings. If the tax information is valid, then backup withholding will be suspended.
Uber does not provide tax advice. To discuss your tax matters, we suggest that you work with a qualified tax advisor.