1099’s Not Required For O-O’s

The Internal Revenue Service’s Office of Chief Counsel has issued a memorandum confirming that a motor carrier need not issue a form 1099 to report payments to an owner-operator under lease to the carrier, provided that the payments represent amounts earned for hauling freight.

Electronic Filing Required For Heavy Vehicle Use Tax Return When Reporting More Than 25 Vehicles

11/10/2014 - UPDATE
In a final regulation published two days after the effective date of the regulation we reported on below, the Internal Revenue Service has rescinded the requirement that anyone paying the federal heavy vehicle use tax for more than 24 vehicles must file and pay electronically.  That rule has been in place since 2011.

IRS stated in the introduction to the amended regulation that the change was made to reduce the burden on small businesses.  In the future, IRS will accept paper filings of the HVUT Form 2290 for fleets of any size.

We are sorry for any confusion!  Please call with any questions you may have.

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10/31/2014
Final regulations have been issued by the Department of the Treasury's Internal Revenue Service requiring the electronic filing of Form 2290, Heavy Highway Vehicle Use Tax Return.  Those regulations in part provide that effective October 29, submission of a paper Form 2290 for 25 or more vehicles constitutes a failure to file for purpose of the Section 6651 penalty.  The tax form for fewer than 25 vehicles may still be filed by paper, but the IRS is moving toward electronic submission of all returns.

Bob Rothstein