I got 1099 but never received bonus money, What do i do???

Company is Great River Energy  of course.  I tried contacting but no contact number anymore.

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Permalink Reply by Nancy Mosley on February 26, 2015 at 6:03pm

What state? Maybe call the state Tax office, the department handling oil and gas production, and see if they have any ideas.

Permalink Reply by adam sorell on February 26, 2015 at 6:51pm

oHIO

Permalink Reply by Dan Warner on February 27, 2015 at 2:24am

I don't believe Mr. Sorrell, nor anyone else, is here to have his grammar corrected, but since that has occurred, let me borrow your chalk:

.

"I didn't receive my bonus check. What do I do?"

Double quotes are not used when a statement is not a direct quote.

"You don't get a 1099 unless you were sent a check unless there is fraud..."

Statement is confusing; there should be a comma after "check".

"...with the vendor."

A vendor is someone who sells you something, not someone who buys something from you, or, as in Mr Sorrell's case, pretends to have.


 

Permalink Reply by Frank Walker on February 27, 2015 at 1:43am

File Schedule E showing all zeroes (or whatever was your actual royalty and bonus receipts in 2014 if any).

Attach to your Schedule E a "Letter of Explanation" making reference to the exact amount of money shown on that 1099 and also making reference to the issuer, Great River Energy.  State clearly in your letter that the money was never received and that the 1099 was sent through error.  Mention your efforts to contact Great River and clear the matter up, and explain what happened when you attempted to do so.

You do not need to pay tax on money you never received.  But you do need to acknowledge the erroneous 1099 and the fact it was sent in error, else the IRS will come after you for sure.  

Permalink Reply by Dan Warner on February 27, 2015 at 2:33am

From Equifax Finance Blog:

 Filing taxes with an incorrect W-2 or 1099

When the total income listed on all of your tax forms is lower than the income you reported, you may not have to worry about it.

But if the W-2 or 1099 incorrectly shows your total income as more than you actually made, you will need to fix the problem. After all, you don’t want to pay taxes on money you didn’t make.

So, what’s the next step? This is also easy. Deduct the difference between the amount reported on the W-2 or 1099 and the amount that should have been listed on the forms.

Quite often, when you deduct the incorrect amount, you will have to include a detailed, written explanation. This might force you to file a tax return on paper instead of online.

For example, let’s say that you received a 1099-MISC for your business that shows an income of $1,000, but it should only show $750. You would simply enter $1,000 as your income on your Schedule C. Then on page 2 of the Schedule C, deduct $250—the difference between what the tax form is reporting and the amount you actually made—with the notation “1099-MISC was overstated.” Naturally, if there is a large difference, you will need to include more detail. In that case, the notation should read, “See statement attached.”

If the income was from a rental property, follow the same process with your Schedule E, Simply deduct the erroneous amount on one of the blank expense lines and add one of the notations mentioned above.

I believe this closely mirrors Mr. Walker's advice.

Permalink Reply by Frank Walker on February 27, 2015 at 6:22am

Thanks for the kind words but I have to confess your post is a needed dope slap for me, to wit:

It never for a moment occurred to me the OP might not be filing a paper return.  I've never used hired help to prepare a tax return and I've never filed other than on paper.  I'm quite chastened by the belated realization of what I overlooked . . . . you talk about tunnel vision.  Wow     

Permalink Reply by Dan Warner on February 27, 2015 at 7:52am

Don't beat yourself up; your advice was sound.

I would imagine that such a small oversight is only a symptom of being from 'the old school'.

I am not as calm.  My response would have been something like, 'clean the guns'.

Permalink Reply by Steven A Joliat on February 27, 2015 at 3:51am

Orange Energy Corp. seems to be the subcontractor issuing 1099s on behalf of Great River.  Their number is (817) 281-0040.

Permalink Reply by adam sorell on February 28, 2015 at 2:46pm

Steve that''s the phone number on the 1099 form. called and not accepting any calls "mailbox is full"  Postage was mailed from Grapevine Texas,76051  Address is North Canton Ohio.

Not like i was expecting these scammers to pay anyways.....

Permalink Reply by Steven A Joliat on March 1, 2015 at 5:55am

Sorry to hear that, we were lucky enough to get through a few weeks ago.  The rest of the Grapevine address is 1900 Enchanted Way, Suite 1525  Grapevine TX 76051

Permalink Reply by RAY RATELL on February 27, 2015 at 10:44am

IF YOU GOT NO BONUS MONEY WAS THERE A TIME SET TO PAY? IF THEY DID NOT PAY ON TIME THEN THE LEASE IS NO GOOD ANYWAY.

THE THIEVES ARE OUT AND RUNNING. BETTER WATCH WHAT YOU SIGN.

MAKE SURE WHEN YOU SIGN A LEASE, ONLY SELL THE ZONE THEY INTEND ON DRILLING IN. DO NOT SELL IT ALL. ( ONLY 1 GAS ZONE ) MAKE SURE YOU GET SHUT IN ROYALTIES AFTER 6 MONTHS FROM BONUS MONEY 250.00 A MONTH MINIMUM IF PRODUCTION GOES UNDER 250.00 THEN THEY WILL STILL OWE 250.00 OR THEY WILL SET ON THE LEASE FOR EVER.

MAKE SURE THERE IS A CLAUSE SAYING THAT THE WELL MUST PRODUCE ENOUGH GAS TO BE COMMERCIAL. THAT SHOULD BE MORE THAN 1 MILLION CUBIC FEET OF COMMERCIAL SALES PER YEAR. ONCE THEY CAN NOT PRODUCE 1 MILLION CUBIC FEET PER YEAR THEY LOSE THE LEASE.

MAKE SURE YOU GET A MINIMUM OF 400.000 CU FT OF FREE GAS TO USE ANY WAY YOU WANT. MAKE SURE IT SAYS ( ANYWAY) YOU CAN MAKE ELECTRIC FROM NATURAL GAS. YOU CAN RUN YOUR CAR ON NATURAL GAS.

MAKE SURE YOU GET THE RUN SHEETS FROM THE PRODUCTION PAYER, OR YOU WILL GET SCREWED. PUT IT IN THE LEASE YOU MUST GET THE RUN SHEET AND THE PHONE NUMBER OF THE PAYEE SO YOU CAN CHECK TO MAKE SURE THEY DO NOT SCREW YOU.

IF YOU DO NOT DO WHAT I HAVE SAID YOU WILL SPEND TONS OF MONEY ON LAWYER FEES FOR NOTHING.

THE COURTS ARE NOT FOR THE LAND OWNER. SO DO YOUR HOME WORK, DO NOT SELL UNLESS THESE POINTS ARE IN YOUR CONTRACT.

Permalink Reply by adam sorell on February 27, 2015 at 11:14am

Ray- yes there was a time period of 120 days to pay. There was a clause though that they can bail out for anytime or any reason. there a clause that you have to send them a 30 day notice that landowner hasn't been paid before lease is void. 

I never sent the letter because it's a small property. I just checked the group i signed up with and they are warning people the company is not honoring contracts. I think Great River has gone straight up criminal. I just read someone's post about RICE reneging also. Seems they are all criminals.

http://www.eougroup.com/

LEASE SIGNINGS:

From September 2013 to March 2014, the Eastern Ohio Utica Group assisted many of our group members with signing leases with Great River Energy, LLC through their leasing agent, Orange Energy Corp.  We had a very landowner friendly lease agreement, with a signing bonus of $6800.00 per acre and a future production royalty of 20% gross.  The completed leases were then assigned to American Energy Partners/Utica Ohio.

In the beginning months, many of our leases were approved and bonus checks delivered to the landowners.  Later on this changed to a very slow process with very few leases being approved for payment. Some of the leases were held up for months, some a year or more.  We waited for results of the title search with little to no response from GRE.  Now we are finding that GRE is no longer approving leases and is sending out letters of rejection to those owners.

The oil and gas industry is always changing.  It seems that companies are pulling back on leasing at this time due to reduced market values.

 

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