Do Storage Companies Get 1099s?
The Internal Revenue Service requires that businesses issue 1099s for service or rental payments of at least $600 to service providers and lessors of business space. Storage companies, which provide space for overflow office equipment, work equipment and document storage may fall into either classification category. Therefore, storage companies must receive 1099s unless they meet the corporation exemption.
The IRS requires that companies that receive at least $600 in rents or services (including parts and materials) must receive Form 1099-MISC. The payer documents the payments made on the 1099 and issues it to the service or space provider and files the 1099 with the IRS by the due dates. This provides sufficient time for the recipient to include the information in the recipient's tax return.
If your storage company is incorporated, it does not receive Form 1099-MISC for regular rental or service payments of any amount. The IRS generally exempts all corporations from receiving 1099s except for very specific circumstances. If your storage company bartered with another company, regardless of the transaction amount, your company needs to receive Form 1099-B. If your storage company had an outstanding debt obligation of $600 or more to another company which that company cancelled, your company must receive Form 1099-C.
All non-incorporated storage companies must receive a 1099-MISC. This includes storage companies operating as sole proprietorships or general partnerships and those organized as separate legal business entities operating as limited partnerships or LLCs. Usually, the payer will request that you complete a W-9 but occasionally they forget. You can include one with your bill statements since the accounting department typically retains copies of W-9s on file. The payer uses the information on the W-9 to prepare the 1099 forms they are required to issue to you and the IRS.
Your business customers must mail Form 1099-MISC or 1099-B to your company by January 31 after the end of the tax year. Form 1099-C must be sent by February 15. If your storage firm is a corporation, you can disregard these dates for services or space you provided. Likewise, if you had no debts cancelled and did no bartering. Otherwise, check your mail to make sure you have all the forms you need. If you think some are missing, contact your errant customer to inquire. Payers can be subject to harsh penalties for failure to file a 1099.