On the 1099-misc, Box 3 lists other income that is taxable. This money is not part of any royalty calculations and after a careful search I am unable to find any proof of the money being paid to me. Any insights would be appreciated.
From you comment I assume you received that 1099 from someone that has paid you royalties but you can’t see where you received the amount shown in Box 3.
Regardless, you need to contact them and dispute what was reported. Contact information for who to talk to should be shown on the 1099. If what was reported turns out to be incorrect they’ll need to file a correction with the IRS and send you a copy.
Here’s what the IRS 1099 instructions show:
“Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your information correctly.”
Oil companies will list lease bonus under other income. Payments for easements / ROW can be under other income. Do you recognize the sender? Sometimes ROW payment comes from agent and then pipeline company sends 1099. Is there a land reference? You can call the sender and ask.
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