1099s For Owner Operators

Save time and money this coming January by not preparing and filing unnecessary 1099’s for owner-operators. In general, payments exceeding $600 or more to any non-employee person in a taxable year for services performed must be reported to the IRS by submitting a Form 1099. Section 1.6041-3(d) of the Income Tax Regulations excludes freight payments from being reported on informational returns. What does this mean for you as a trucking company owner? If you have owner-operators, the payments to them are treated as “freight” payments and the issuance of 1099’s is not required. For more information on this topic please contact derick.fortenberry@bellandcompany.net or call Derick at 501.753.9700.