REQUEST A QUOTE

4 + 6 =

BLOG

by | Last updated Mar 4, 2021 | Published on Sep 29, 2020

It’s time to begin thinking about 1099’s again, and our gurus at Eddye Dreyer 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!

Eddye Dreyer 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, 2021 – Due to IRS and to recipients

1099-MISC
February 1, 2021 – Due to recipients
March 1, 2021 – Due to IRS (if paper filing)
March 31, 2021 – Due to IRS (if filing electronically)

And remember, you can contact us with any questions!

ABOUT THE AUTHOR

<a href="https://www.petro-ledger.com/author/melinda-marks/" target="_self">Melinda Marks, CPA</a>

Melinda Marks, CPA

Author

Vice President of Operations

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.

As PetroLedger’s Vice President of Operations, Melinda wears many hats throughout the day. In addition to serving the needs of certain high-visibility recordkeeping clients, she oversees a team of associates, and is heavily influential in the company’s decision-making processes.