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 Eddye Dreyer Financial Services, LLC

AvatarEddye Dreyer Financial Services began with a simple thought in mind: E&P operators are often not fully equipped to perform the complex accounting required for the management of oil and gas assets. At the same time, it can be prohibitively expensive to maintain a full-time staff of specialized bookkeepers and in-house accountants. That’s where we come in.

As a subsidiary of San Antonio-based Avisto Capital Partners, Eddye Dreyer Financial Services is a best-in-class oil and gas bookkeeping firm specializing in comprehensive bookkeeping, mineral interest management, financial consulting, and regulatory compliance services. With more than 50 experienced oil and gas bookkeepers, controllers, analysts and landsmen, we have become leaders in the oil and gas industry with specialized expertise in the latest laws, methods, and technology.

As the exclusive preferred partner of WolfePak oil and gas accounting software, we are able to offer a complete suite of solution for clients looking to outsource their bookkeeping and back office operations.