I had noticed the problems with Alta Mesa and BRE-Mack III , Hinkle and wanted to write my two cents in. My first 1099 from Alta Mesa was blank, as was BRE- MACK, My second 1099 mics from Alta mesa the figures do not match the paystubs. (I’ve recontacted them 3rd time now). Hinkle, just sent theirs out last Friday. Blackbeard, still had my brother on their books, he died two years ago so I had to resubmit proof today. Also BRE’s figures don’t match.
Anyone else having problems?
Hi Robin:
I only wish there was a standard for 1099-Misc’s, but there isn’t. Some send out gross royalties, before any deductions, taxes, etc, some show gross, but also show deductions and a net and others just show net royalties. Who knows, right? I always report to the IRS the gross amount and my accountant takes it down to the net so I get credit for the depletion allowance and then don’t pay taxes on deductions and taxes that were taken out. Good Luck.
I will join the chorus! My interest is in sec 4 T17N 5w held by 1960s lease with Texaco et al with one 1970 well being incorporated into one of the Lincoln North units in the early 70s. It has been operated by Henkel with royalty disbursement being handled by different folks over time. When Alta Vista blew apart, Henkel took back its N Lincoln property with Martindale being the royalty disbursement agent. Their numbers are as per the original lease and other than the lateness of their 1099, which just arrived today, are ok.
Additional horizontals were drilled under Alta Vista or Energy Acquisitions which are now operated by Mach — which they say under some (Blanchard??) bankruptcy rules allow them to impose (or invent) charges against the royalty not allowed under the very old lease. Their 1099 came promptly but leaves a lot of open space. The deducts represent what they are doing so I have no problem with being able to identify the tax deductions.
I also received a blank 1099 initially from Alta Vista which was followed by a filled in form which was correct in the gross but I had to calculate the OK WH, production taxes and deducts based on my run tickets.
My accountant can handle the tax return issues but there will be the ongoing issue with improper charging of process, marketing, pipeline, compression plus a charge for fuel by Mach. Hinkel is in compliance with the original lease.
On top of that some are very late in sending out the 1099-Misc. In January received a 1099-Misc from Alta Mesa showing zero since I had sold my mineral interests. Then 3 weeks into February they sent out another one showing some royalty income, well after I had filed Federal taxes. Now I have to file an Amended (1040-X) Federal form, just another nuisance and Alta Mesa was way past the deadline for mailing the 1099-Misc.
This topic was automatically closed after 90 days. New replies are no longer allowed.