Are there guidelines that Oil & Gas producers must follow related to sending payments and recording 1099 statements in a timely manner?
The reason I ask, we received a 1099 for 2024 today (2/10/2024) in the same envelope as a payment for 2024 dated 12/31/2024 but postmarked February 8 , 2025.
Is there any government group for Oklahoma State or Federal that I can report this fraudulent activity to that would hold this company accountable for attempting to report disbursement for oil royalties that were not paid in a timely manner.
This has subsequently have created challenges for our bookkeeper to properly track 2024 income versus 2025 income?
I think you are overreacting here as this is not fraud since you are being paid. For Federal purposes as a cash basis taxpayer, you can report the revenues in the year received but that must be done on a consistent basis. However, if OK state income taxes are being withheld, then you will need to report the revenues to match the 1099-Misc. So it will likely be easier to have the check booked as 2024 income with the check outstanding as of Dec 31, 2024, same as if it was simply deposited late at the bank. A bookkeeper should be able to easily handle this.
And Im guessing that your last check for Novemeber was received on or around January 8-10th? You seem to be over reacting just a tad (like the Paicifc Ocean size tad) about fradulent activiy and the challenges this puts on your accountant. Is this your first year you or your accountant have dealt with oil and gas? Its February 12, 2025, tracking 2025 vs 2024 income should be a breeze for any competent bookkeeper.
My standard response, have you attempted to contact the producer concerning this issue. On a year over year basis, the accounting balances out. I agree with @Bob77 and @TennisDaze that you are potentially making a bit too much out of this. With that said, it is you property so do what you believe best to protect your interest.