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.

• How does Ascent report a revenue check that is dated December, but received by an owner in January?

  

  Revenue is reported on the appropriate Form 1099 for the year in which the check was issued, regardless of when the owner receives or deposits the check.

• How are missing and/or voided checks handled on the Form 1099 from prior years?

  

  The IRS requires that all payments made in the calendar year be included on the Form 1099. Forms will not be restated due to missing or voided checks, which were voided and reissued in subsequent year(s) based on the owner’s requests or as a result of not being deposited. Forms 1099 sent out and submitted for prior calendar years will not be restated and resubmitted to the IRS unless restatements relate to an Ascent internal error.

• How are amounts reported on Forms 1099 determined?

  

  Amounts reported on Forms 1099 include revenue from all checks issued to owners during the prior calendar year. Other owner information reflected on the 1099 (owner name, SSN, address, etc.) is based on the information known to Ascent at the time the forms are generated. Checks issued and subsequently voided during the same year will not be included.

• 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.

• Do I have to use the amount reported on the Form 1099 when I prepare my tax return?

  

  The Form 1099 reflects information on file with Ascent at the time the form was prepared. If ownership and/or other changes were not communicated to Ascent, you may need to make adjustments on your tax return in order to report accurate information. Please consult with your tax advisor.

• 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.
• How are the impacts of ownership changes handled for Form 1099 reporting?

  

  Ownership changes communicated to Ascent will be made prospectively and any Forms 1099 already submitted to the IRS will not be restated unless notification of ownership changes are timely communicated to Ascent and checks were not cashed.

• 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.