Freight is not 1099-reportable. Currently we do report demurrage and detention charges—but is there an IRS IRC section or IRS bulletin that supports our stance? Is it even a correct stance?

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I see an argument for reporting such charges. I would think it falls under rent payments, since it’s effectively leasing space. I assume the IRS would view demurrage or detention charges as rent of the space in the warehouse or ship. However, I have not asked them directly.

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