IRS Form 1099

Moot · Feb 12, 2017

I received the following E-mail from Panther concerning 1099s for tax year 2016:

Dear Professional Independent Contractor,

As April 15 is rapidly approaching, we wanted to reach out to you regarding your IRS Form 1099 information. Due to new Federal laws, Panther is not required to send you an IRS Form 1099 unless you have received payments outside of compensation earned from freight hauling services.

Panther Premium Logistics has attached to this email a "2016 Tax Helper Detail Report". Panther is providing this report as a courtesy to assist you in your tax preparation for 2016.

The "2016 Tax Helper Detail Report" is NOT a 1099 form. Panther is only providing this to assist you in reviewing your revenues and expenses derived from Panther this year. Panther will not be issuing 1099's for compensation related to freight hauling services as payments made for the transportation of goods are excepted from 1099 reporting. The "Total Amount" line on the attached "2016 Tax Helper Detail Report" will equal the amount of total payments from Panther. Please consult with your tax advisor.

Is anyone else aware of this change? This E-mail included a link to my very own compensation for 2016. It was much more detailed than a 1099. It stated my year gross plus all of the deductions, ie: insurance, QC etc. Previous years I had to go through it week by week and add it up. For years I was after Panther to include a "year to date" total on my weekly settlement statement, to no avail. Now I have it! Well not a weekly year to date, but at least an end of year tally!

Are other carriers going this route?

RoadTime · Feb 12, 2017

This seems like a really bazaar rule change. Why in the world would they do this :think3:

Moot · Feb 12, 2017

RoadTime said:
This seems like a really bazaar rule change. Why in the world would they do this

I don't know! I started this thread to see if any other carriers were going this route. I totally believe everything Panther tells me without question but this one time I thought it prudent to get a second opinion. I will be meeting with my tax accountant in early March so he can clarify this for me. But in the mean time...anybody?

Ragman · Feb 12, 2017

Never heard of such a thing.

fastman_1 · Feb 12, 2017

Just had my taxes done and he asked for my 1099's

Sent from the deep end.

RoadTime · Feb 13, 2017

Ok, after some searching it seems they are correct. Although not a new rule. Freight is except from 1099 reporting.

They may be correct, but seems like a really crappy thing to do. My guess is someone figured out the loop hole and it's for cost savings. So nice of them to provide the break down sheets as a "courtesy", now you figure out what to do with it

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Moot · Feb 13, 2017

fastman_1 said:
Just had my taxes done and he asked for my 1099's

Were you able to supply him with a 1099?

fastman_1 · Feb 13, 2017

Moot said:
Were you able to supply him with a 1099?

Yep PTL issued 1099's

Lost in Space.

scottm4211 · Feb 13, 2017

What is the downside to no 1099? Greater chance of audit?

Moot · Feb 13, 2017

I wuold assume nothing if it is legal.

RoadTime · Feb 13, 2017

scottm4211 said:
What is the downside to no 1099? Greater chance of audit?

That would be my guess. With no one reporting your income. Audit chance greatly increased.

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fastman_1 · Feb 13, 2017

RoadTime said:
That would be my guess. With no one reporting your income. Audit chance greatly increased.

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We file electronically so no 1099 gets sent in, no idea what The accountant does to show he has seen the 1099, but I have only been audited once in 32 years

Lost in Space.

Greg · Feb 15, 2017

Landstar sends a 1099 via USPS and it is also available online. It would seem with "other" compensation throughout the year, not just "freight", that you should still get a 1099. Unless any extras like waiting time, loading or unloading, fsc, layover, etc. all fall into the same category.

Moot · Feb 15, 2017

Greg said:
It would seem with "other" compensation throughout the year, not just "freight", that you should still get a 1099. Unless any extras like waiting time, loading or unloading, fsc, layover, etc. all fall into the same category.

The "other" for me would include income outside of transportation such as my former chinchilla business, Grit Newspapers, Pet Gators etc. Detention, FSC, layover etc. are included as compensation for freight hauling.

acvox24 · Feb 16, 2017

I haven't gotten a 1099 from Panther in 2 years. Some how it gets lost in the mail every time. And every time I go down there and make stink about it, they tell me it's going to be 2 weeks of red tape. Been doing it with that form they sent you. Although H&R Block always gives me a look, it works. The whole thing still feels a little shady.

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