Looking For Your 1099?
(http://www NULL.irs NULL.gov/pub/irs-wd/9932048 NULL.pdf)According to our CPA Firm there is a general exception from the requirement to file I.R.S. 1099 forms for payments made for “freight services”. According to a 1999 IRS ruling (http://www.irs.gov/pub/irs-wd/9932048.pdf (http://www NULL.irs NULL.gov/pub/irs-wd/9932048 NULL.pdf)) the exception for “freight” has been in existence since 1918. The IRS has consistently interpreted the term “freight” using its plain meaning, “as a method or service for transporting goods or the cost of such transportation”. The interpretation results in a general exception from reporting of payments for truck, rail, ship, and air freight services. Additionally, payments to incorporated trucking companies are excepted from reporting (Internal Revenue Code Section 1.6041-3(c)).
Furthermore, payment made to owner-operators may be excepted as “freight” under Treas. Reg. Section 16041-3(c)), but household goods hauled by a moving company are not considered “freight” eligible for the exception. Please note that the freight services exception does not apply to independent sales agents who may be used by members or to any other types of service providers-these remain subject to the 1099 requirements, although they may be subject to other exceptions depending on the nature of your individual operation.
