Have run into this twice now: If Newfield Exploration paid you interest in 2018, it’s being reported to the IRS twice, once on a 1099-MISC and once on a 1099-INT. The interest is also being included in the gross royalty amount in Box 2 of the 1099-MISC as per their detail reporting to a Net payment amount.
Keep in mind the IRS wants to “find” all the 1099 numbers somewhere on your return so you’ll need to be smart in filing your returns to prevent an IRS CP-2000 letter in a year or so asking you why they could not.
Thank you for this post. I am trying to understand the statement from Newfield where they reported our interest on late payments on the new TDR 1H-14X well in McClain 23, 06N-04W. I have not been able to reconcile this, so will look again and compare with the tax forms. I am still trying to see why they list the INTPMT in an "8/8THS Deducts column as a negative figure, then in the “Owner Deduct” column as a negative figure, then in the “Owner Net” column as a positive figure. Am I am missing something obvious?
In a tally of the positive versions of this payment, I come up with what they included on the 1099-INT which we also received late.