What is the 1099-NEC?

What is the 1099-NEC?

Starting with payments made in 2020 the IRS has required some payments be removed from the       1099-MISC and reported on a 1099-NEC. Payments for services, vendor payments, and working interest payments are now reported on the 1099-NEC.

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    • Why did I receive 2 forms: 1099-MISC & 1099-NEC?

      If you received both royalty and working interest payments in these are now reported on separate forms. Also, if you received royalty payments and provided services to Urban, these will be on different forms.
    • My 1099 shows more than I received on my royalty checks

      We are required by the IRS to report the gross amount on your 1099-MISC and 1099-NEC. Your royalty checks reflect the net amount received after taxes and deductions. All the information to get the net (check) amount is provided from your revenue ...
    • When are 1099s Mailed?

      1099s are mailed no later than January 31st of each year (or as required by the Internal Revenue Service). Due to the volume of accounts, Urban is unable to provide 1099s before January 31st. Please allow 15 business days from January 31st to receive ...
    • Why does my royalty check amount vary?

      Various factors will affect your royalty check, including: Fluctuating commodity prices Normal production volume declines Operational issues that may affect production volumes Volume or price revisions may require prior period adjustments (PPAs). If ...
    • How Do I Sign Up For Direct Deposit?

      Urban is pleased to offer our interest owners the option to participate in our Direct Deposit Program. Your participation in this program allows you to receive your royalty payments through Electronic Funds Transfer (EFT). Direct Deposit Benefits: No ...