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by | Last updated Nov 3, 2022 | Published on Oct 5, 2022

It’s time to begin thinking about 1099’s 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.

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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, or reach out to us to find out more.

FORMS

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)

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ABOUT THE AUTHOR

<a href="https://www.petro-ledger.com/author/lrabalaispetro-ledger-com/" target="_self">Lauren Rabalais</a>

Lauren Rabalais

Author

Creative Marketing Associate Lauren, one of our youngest team members, comes to PetroLedger shortly after obtaining her Digital Media Innovation degree from Texas State University. Armed with knowledge of digital and social media trends, Lauren brings a fresh perspective to PetroLedger’s online identity and ensures that our company reaches new clients. Email Lauren: lrabalais@petro-ledger.com