Should payments to a storage facility be reported as rent on the 1099, or as miscellaneous income?


Per Treasury Regulation 1.6041-3, "Payments for merchandise, telegrams, telephone, freight, storage, and similar items" are not reportable on Form 1099-MISC.  Although these are long-standing reporting exceptions, neither the IRS nor the tax court have frequently construed the meanings of these terms.  Using their plain-language definitions, payments for storage are not reportable on Form 1099-MISC; neither are payments for telephone, or any items similar to those listed in the exceptions.


This question was answered by COKALA Tax Information Reporting Solutions, LLC, a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting. You can learn more about them at

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