Earlier quoted context omitted.
It happens all the time. And often the parent company is trying to avoid taxes (well, in theory the amount of taxes stays the same, it's just a question of who pays and who keeps the records). In this case, Uber's also trying to avoid learning about and complying with local, state and federal regulations (and, so far, they've been successful). At least as far as federal tax is concerned, the IRS has some advice at ht…
Can anyone submit a letter of determination to the IRS asking them to determine if Uber is operating legally with regards to its independent contractor worker classification?
The IRS probably already knows about Uber. They probably haven't audited the company or asked for details, but they must be vaguely aware of how the company operates.