Thursday, May 22, 2008

Trucking Along

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.

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