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

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• 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.

• 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 ...

• 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 ...

• I didn't receive my December check until January, why is it included on my 1099?

  The IRS uses the “Constructive Receipt” doctrine. Because the December royalty check was issued in December, the amount is appropriately included on the 1099 even if you received the check in January.

• What is a Division Order?

  A division order is a legal document utilized by many operators to specify the distribution of revenue from produced hydrocarbons among mineral rights owners. Since the same information contained in a typical division order is included on your ...