Hello: Our 2025 1099 underreported income from Chord and did not include a summary of the year’s expenses. They do not respond to numerous repeated phone calls requesting an amended 1099 and only have a recording to answer calls. Anyone else in a similar situation with Chord? Thanks!
Some companies report the net royalties (gross royalties less all expenses) as a single number, instead of reporting the gross royalties and itemizing the deductions. It can be aggravating but they are unlikely to change this. You can report the true gross royalties Schedule E of your tax return to maximize the depletion deduction and then deduct the expenses.
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Thank you
I had the same problem with Coterra and Civitas. Coterra still hasn’t returned my phone calls (a month ago); however, Civitas was very prompt with communication. I was told by Civitas to go by the YTD on the Dec statement they send out.
Fairly certain that information messed up my 2024 taxes.
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Consider creating a spreadsheet and entering the monthly gross royalties, severance tax, costs and net royalties, either on a whole-check basis or broken out by well. If your minerals are subject to state income tax withholding, then add another column for the state income tax withheld. You may need to have separate schedule pages by state. The purpose of the 1099 is to provide royalty income data to the IRS. It is up to you to keep records to verify that you received all the income and to report your income accurately. It is not an error for the 1099 to provide the net revenue number as that is what you will be taxed on. It is just unfortunate because you can lose some depletion deduction. Be sure to check the reverse side of the 1099 because many companies break out the income there.
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TY for the suggestion, its what we ended up doing (great minds!). Just frustrating and unusual as we’ve not run into it before. Thanks again