All royalty interest owners who receive at least $10 annually and working interest owners that receive at least $600 annually will receive an IRS Form 1099-MISC, which is mailed to the owner by January 31st of the following year. The income reported to the IRS is gross income prior to any deductions or taxes. If applicable, the 1099 will also list any U.S. withholding amounts deducted from your revenue checks. Payment types typically include the following:
- Rental payments
- Lease Bonus Payments
- Delay Rental Payment
- Right-of-way payment (partially taxable; based upon landowner’s tax basis in property subject to the right-of-way)
- Damages (fully or partially taxable; based upon nature of the damages and tax basis of landowner):
To request a replacement for a lost 1099 or for questions regarding your 1099, please send an email including your name and owner number to 1099 Questions. You may also call the 1099 hotline number at 304-808-6599.