Driver Reported Income to IRS, Tax Court Says, Albeit Improperly

A taxpayer can claim $13,000 in deductions after reporting income from a transportation business and driving for Lyft, the US Tax Court said.

“Although the amounts were reported somewhat improperly, they were nevertheless reported,” Judge Courtney D. Jones wrote.

The taxpayer, Yagoub Tibin, is the principal of TM Transportation LLC, which contracts with private and governmental entities to drive people to medical appointments around Philadelphia. He’d petitioned the US Tax Court after the IRS levied fines for his 2020 tax returns, in which some of his information had been reported in improper categories.

Wednesday, the Tax Court determined that while ...