1099 Oil-Gas Royalty Income

Some other royalty owners may also have this problem. I am gathering together everything to take to our CPA, but I appreciate the input from the people we have on our forum. I feel very fortunate.

Most of the other operators put the total amount of the royalties on Line 2 of the 1099 and add additional information to show what we were actually paid. However, Sabine (and a few operators with old wells with minimal production), does not provide any additional information so it would indicate they paid us about 40% more than they actually did. We have sent two emails to Sabine with no response. We have copies of all of our checks, so I guess we will provide those to the CPA. We appreciate any comments. This has probably been discussed before, but we could not find it on the forum. Thanks Kathy

The amount they report is the gross royalty paid. There are usually deducts for severance taxes and other costs, so your net checks won't be the same amount. You should have received with each check, a copy of the stub which shows the amounts. If you add up the gross, it should equal block 2. any other information is simply the companies' with software to accommodate your reconciliation. As your CPA should tell you (and I am one), it is your responsibility to keep those records, and you can call the company and ask for their numbers if you somehow misplaced the stubs, but they really don't have to give them to you after they have sent the stubs.

Thank you very much James. That answers my question. Kathy