1099 Questions

1. Will I receive a 1099?

The minimum amounts for which 1099s are issued are:

Box 1 (Rents) – $600
Box 2 (Royalties) – $10
Box 7 (Non-Employee Compensation/Gross Working Interest) – $600

2. When should I expect my 1099?

The IRS requires 1099’s to be mailed no later than January 31st.

3. How can I receive another copy of my 1099?

Email your name and owner number to the appropriate email address listed on this page.

4. What are the values on my 1099?

The values are as follows:

Box 1: (Rents) Monies paid for lease bonus, rights-of-way, shut-in royalty payments and water usage.
Box 2: (Royalties) Gross payments made on production
Box 7: There are two types of monies that can be reflected here:

(1) Gross Working Interest: Your owner type shares in the operating revenues and costs associated with the well.
(2) Non-Employee Compensation: Payments made to contractors

5. Why does the amount in Box 2 and Box 7 on my 1099 not equal to what I deposited?

The IRS requires gross amounts be reported in Box 2 and Box 7. Your periodic disbursements are net of deductions and taxes. If you deduct the taxes and deductions from the amount reported in Box 2 or Box 7, the calculated figure should equal your deposits.