Owners

FAQs - Form 1099 Information

• When will I receive my Form 1099?

  

  The Form 1099 is mailed by January 31 of each year. If you have not received your Form 1099 by February 15, please contact us at (405) 252-7808 or 1099inquiry@ascentresources.com.

• Will I receive a Form 1099?

  

  The minimum amounts for which Form 1099s are issued are:

  • 1099-MISC (Box 1 Rents) - $600
  • 1099-MISC (Box 2 Royalties) - $10
  • 1099-NEC (Box 1 Nonemployee compensation) - $600
• Why does my Form 1099 reflect more than the amount I received?

  

  Per IRS requirements, the Form 1099 reports the gross amount before taxes and other deductions. Please refer to the Form 1099 “Instructions for Recipient” for more detail – this will assist you with reconciling your gross and net amounts received.

• What does "Tax" represent?

  

  The tax amount represents taxes deducted from your royalty check. The two taxes that may be deducted from your royalty check are ad valorem and severance tax.

  • Ad valorem – tax on producing minerals that are levied at the county level on an annual basis. The assessment values and tax rates are determined by the respective county assessor.
  • Severance – a tax imposed on the removal of oil and natural gas. The tax rates are determined by the state. This tax is levied on your pro rata share of oil and gas production. The operator remits this tax directly to the state.

• What does "Other Deductions" represent?

  

  Other Deductions consist of post-production costs that were incurred to move the natural gas and natural gas liquids from the well to the final sales point. These post-production costs include gathering, transportation, compression and processing and are itemized on the check detail issued to you during the tax year.

• Can I see an explanation of a Form 1099?

  

  Here is an explanation of a Form 1099.

  Ascent cannot furnish tax advice. If you need instruction on how to reflect your Form 1099 on your tax return, please consult a tax professional.

• Why didn’t I receive a Form 1099?

  

  • The IRS requires us to send you a Form 1099 if your gross revenues from royalties were $10 or more or if your other gross revenues were $600 or more. We will not send you a Form 1099 if your gross revenues were below these minimum thresholds.
  • We are not required to issue Form 1099s to corporations or exempt entities.
  • The address we have on file might not be your current address. Please complete a change of address form.
• Why was backup withholding tax deducted from my revenue check?

  

  If we do not have a valid Tax Identification Number or Social Security Number on file for you, the IRS requires Ascent Resources to withhold 24% from an owner’s payments. To avoid future withholdings, a completed IRS Form W-9 must be provided to us.

• How do I access Form 1099 information with Enverus/EnergyLink?

  

  Enverus/EnergyLink is the site you will use to access your Form 1099 electronically. You will reach out to them directly to set up a username and password at (844) 608-2255 or https://www.energylink.com/contact.