Hello, I have a quick tax question - I do my own taxes and this is the first year adding royalty income. I don’t have an accountant so hopefully someone can help me with a concrete answers to my questions as we don’t use a tax person and don’t plan to - we have a business and been doing things ourselves for years
We live in NC and all interests are in OK.
I already filed income taxes (Tax Act) and Federal and my State were already accepted by the IRS and I paid those taxes etc.
For the OK non-resident portion I did input all the 1099 info from the various ones we received for the royalties.
Pretty sure we sent all W9s in to all companies when acquiring these interests last year.
There is a “withholding” amount on almost all 1099s.
AREN’T THEY SUPPOSED TO NOT WITHHOLD SINCE WE SENT W9s IN?
According to Tax Act, since of course it factored in the WITHHOLDING (which assuming it was PAID to OK), we were due a very small refund.
Instead OK has notified us - they said there was 0 withholding (they did not receive it?) so we owe most of that (minus an amount which I haven’t looked at yet but I think it’s the severance tax etc I claimed).
WHAT DO THOSE COMPANIES DO WITH THE WITHHOLDING AMOUNT THEN SINCE THEY WITHHELD IT?
I don’t know if I need to contact the companies to see why they didn’t pay OK, or to get the withholding sent to me, or next step is contact OK to see if they just need copies of the 1099s.
Hope someone can help. Thank you!