NYS Tax Letter Asking for Proof of Income: Driver Checklist

In short: New York State publishes an exact list of what it accepts from drivers who get a letter about their income: the Checklist for acceptable proof of income and expenses for taxi, limousine, and self-employed drivers (updated December 12, 2025). What you send depends on how you drove — a taxi driver sends the Verifone or CMT meter statement, an Uber driver sends the Uber Tax Summary plus every 1099-K and 1099-MISC, and so on — plus Schedule C and proof of expenses covering at least six months of the year (NYS Tax). You can upload it all online.

Answer by the date on the letter. NYS says to respond by that date so it can keep processing your return (NYS Tax). This page turns the state's list into a checklist for your driver type. It is not tax or legal advice; if the letter proposes extra tax, consider a tax professional.

Step 1: Pick how you earned money that year

Many drivers did more than one kind of driving in a year. Go through the wizard once for each.

If you drove for an app and got a 1099-K that is bigger than your payouts, include the app's itemization of deductions from the 1099-K gross — TLC rule 59B-18(f)(7) requires high-volume apps to give it to you (TLC Rules, ch. 59). See your 1099-K vs what you earned.

Step 2: Expense documents every driver sends

Why the ownership proof matters: NYS will only accept car depreciation, insurance or repair costs if you show the car is yours (registration or insurance card) or that your lease makes you responsible for those costs. If you rent a car and the rent already includes insurance and maintenance, you didn't pay those costs separately — the rent itself is the expense you document, with the rental agreement and payment records.

Step 3: Take out what NYS won't accept

The checklist says you may not deduct these as business expenses:

If your return included any of these, expect NYS to remove them. More: can I deduct TLC fines? For everything else, NYS points to IRS Publication 535 for the general rules on business expenses.

Why drivers get these letters

NYS lists common reasons it sends a Request for Information: to verify the wages and withholding you reported for New York State, New York City or Yonkers; to verify that you lived or worked there; or to verify credits and deductions you claimed (NYS Tax). For a self-employed driver, the letter may ask you to prove the income and expenses on your Schedule C. A letter is a request for proof, not a finding that you did something wrong. Read it closely: it names the tax year and may list the exact items NYS wants to see. Answer only what it asks, but answer all of it, so NYS has what it needs to finish reviewing your return.

Where to get documents you don't have

• App summaries and 1099s: download them from the app's tax or earnings section. Ask support in writing if an older year is missing.
• Base records: TLC rule 59B-18(f)(6) requires a base to keep the base agreement, itemized earnings paid to drivers and itemized payments received from drivers for three years after the agreement ends or the last trip dispatched to you, whichever is later (TLC Rules, ch. 59). Ask your base for copies.
• Base receipts: rule 59B-18(f)(5) requires a receipt for every financial transaction between you and the base, showing the date, amount and purpose.
• Taxi meter statements and fleet reports: ask your garage or the taxi technology provider for the Verifone or CMT statement and your driver pay report.
• Bank statements: your bank can provide past statements; they help prove gas, tolls, rent and phone bills paid by card.

Make your response easy to check

Put a short cover note on top that lists each file and what it proves. Then group the files: income first (the forms and summaries for your driver type), then expenses in the same order as your Schedule C lines, then car ownership or lease papers. Name each file clearly, for example "2025 Uber Tax Summary" or "2025 Jan–Jun gas receipts".

If your Schedule C income is lower than the 1099-K gross, say why in one or two lines and attach the app's itemization: commissions, passenger charges and other deductions the app took out. If you used the IRS mileage rate, attach your mileage log rather than gas receipts. Don't send originals you can't replace, and keep a copy of everything you upload.

Step 4: Reply online

NYS's instructions for responding:

(NYS Tax: respond to a letter)

If the letter says you owe more

A DTF-960-E (Statement of Proposed Audit Change) means a review produced additional tax, penalty or interest. NYS says that if you disagree, the review instructions are on page 2 of the notice; if you agree but can't pay in full, you can ask for an installment payment agreement online. Self-employment changes can also affect MCTMT for the same year. This is the point where a tax professional is worth calling.

Avoid the scramble next year

Most of what NYS asks for is easy to save during the year and hard to rebuild later. Download your app summaries and 1099s each January, keep the fleet's driver pay reports, and keep receipts in one folder. A full year-end routine is in TLC driver tax records. Taxi-specific tips: taxes for NYC taxi drivers. If you live outside NYC, see do non-residents pay NYC income tax?