Reconcile the 1099 with the your checks. The 1099 should set out the gross royalties (before deduction of costs, severance taxes, OK income tax) and then set out the deductions, including the OK income tax withheld. Then you can see whether the net reported to IRS matches what you actually received. If the 1099 is not correct, send an email requesting that a corrected 1099 be issued. If the company refuses and the amount is small, perhaps you can deduct the difference as an additional cost on schedule E. Be sure to ask your tax advisor about whether this is acceptable. If the amount is substantial, you can point out to the company that Internal Revenue Code Section 7434 provides for civil damages for fraudulent filing on information returns as described in Section 6724(d)(1)(A). This list includes statements reporting payments of royalties. Here are links that I found on internet - https://www.govinfo.gov/content/pkg/USCODE-1998-title26/pdf/USCODE-1998-title26-chap76-subchapB-sec7434.pdf and 26 USC 6724: Waiver; definitions and special rules