Do operators usually send some type of accounting information for Working Interests at the end of the year? Similar to 1099 for profit/loss. Maybe a K1?
No they don’t. It is up to the WI owner to keep their own. It is not a partnership, but rather a co-tenancy.
The operator will usually send a 1099 with limited information. If you are an individual or sole member LLC then you report on Schedule C. Otherwise your entity reports on appropriate tax form and your accountant can help you with this. If the operator has withheld state income taxes, then you need to handle those appropriately for federal tax purposes and will need to file the state tax return.
This topic was automatically closed after 90 days. New replies are no longer allowed.