Trucking Along

2008-05-06 by

Today TaxMama hears from Jim in Los Angeles, who tells us. “I run a trucking business. This will be my first year hiring contractor drivers so I want to know, at the end of the year when I give them a 1099 am I supposed to send one to the IRS with my corporate tax return?”

Hi James,

Good questions.

If your drivers really are independent contractors, as in owners-operators, yes, you’ll send them a 1099 at the end of the year. And a copy will go to IRS.

No, it won’t go with your corporate tax return. It goes with a transmittal report called a Form 1096 that needs to be filed by February 28th – or electronically, by March 31st.

If they are using your vehicles, be careful. You know what happened to FedEx, right?
http://www.reuters.com/article/hotStocksNews/idUSN2424803220071224

http://www.fedexaminer.com/FedEx/ – scroll down to misclassifying…

If they’re using your vehicles, following your schedule, and delivering on your contracts, you may need to think about putting your drivers on payroll.

And remember, you can find answers to all kinds of questions about the trucking industry and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

Download the MP3 (0:00min, 0MB) or listen now...

Ask TaxMama
Where taxes are fun and answers are free
www.TaxQuips.com
The number ONE free tax podcast online
Reuters article - Dec 2007
regarding IRS assessment of $319 million against FedEx
The FedExaminer
Notes to FedEx employees about misclassification lawsuit


All Comments RSS

  1. Sharon Raines Says:

    Be very careful on how you classify your employees.

    Employers should remember that there is a $50 penalty per information returns that cannot be scanned into the IRS system. So if your going to hand write the tranmittal sheet, make sure that it is legible.

    You can order official IRS forms at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676)


Google Custom Search