IRS Taxes on Royalties

I have four state gold claims in Alaska totaling 160 acres.

This year I leased the claims to an individual. Operations should begin within

the next couple weeks.

The lease provides a royalty to me of 15% of all production up to 200 ounces and

20% thereafter.

What must I do to satisfy the IRS on production royalties? What forms will I need to


I've been mining/prospecting for several years, but this is the first year I've leased out

the claims.

Thanks for any help/info you can provide.

Norm in Alaska

Good question wish someone had answered it by now…