1099 Questions

1099 Questions

1. Will I receive a 1099?

The minimum amounts for which 1099s are issued are:

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

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

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

The values are as follows:

  1. Box 1: (Rents) Monies paid for lease bonus, rights-of-way, shut-in royalty payments and water usage.
  2. Box 2: (Royalties) Gross payments made on production
  3. 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

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.