It’s that time of year begin thinking about 1099 forms again, and our gurus at PetroLedger Financial Services have made it easy for you by compiling all the resources you need.
The most significant change this year is the reviving of the 1099-NEC for any non-employee contractors. In the oil and gas industry, this includes working interest holders. You will now report these payments (including lease payments and bonuses) in Box 1 of the 1099-NEC.
You will still use the 1099-MISC to report payments to royalty owners. These lease payments (and bonuses) are recorded in Box 1, and the royalty income in Box 2.
Here’s a short video that highlights what has changed for the 2020 Tax Year:
Helpful Tips:
- Keep a current Form W-9 on file for each of your vendors, to ensure you have the correct payee name, address, and TIN for the Form 1099.
- You must file a separate Form 1096 for the 1099-MISC and 1099-NEC.
Still have questions? Please contact us – we’re happy to help!
PetroLedger Financial Services can help you with your 1099’s! Read about our outsourcing services, our updated 1099 work, or reach out to us to find out more.
FORMS
- Form 1096 (PDF)
- Form 1099-MISC (PDF)
- Form 1099-NEC (PDF)
- Form W-9 (PDF)
DEADLINES
1099-NEC
February 1, 2022 – Due to IRS and to recipients
1099-MISC
February 1, 2022 – Due to recipients
March 1, 2022 – Due to IRS (if paper filing)
March 31, 2022 – Due to IRS (if filing electronically)
If you want to read more insights from PetroLedger, check out our blog!
Melinda joined the PetroLedger team in August 2019. She graduated from Baylor University and is a Certified Public Accountant. Melinda has more than 25 years of oil and gas accounting and management experience, as well as, outsourcing. She has been involved in transactional processing and reporting for public and private companies. She is passionate about providing outstanding timely and accurate client bookkeeping to support solid business decisions.
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