1099 from Statoil

Just received my 1099 from Statoil - the amount is double of what I received.  Spoke to other folks involved with Statoil and their 1099 shows that the amount is also double of what they received during the year.  Any one involved be sure to check the 1099 you receive fromStatoil.

Also no one is answering their phone calls or emails.

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Permalink Reply by Tico on February 7, 2013 at 3:22pm
I hope I'm wrong but I got my 1099 from Chesapeake and statoil and I think if you add their deductions to your royalties I think we are being taxed on the deductions, Money that we don't even see, they are taxing us on, unbelievable ,,,
Permalink Reply by rat hole willy on February 7, 2013 at 3:52pm

yes, we are being taxed on what we didnt receive  but my 1099 is also for more then the amount i received and the deductions ?? and chk was the only one that showed what was really deducted, i guess on the other you have to figure it out for yourself . 

Permalink Reply by Clinton44 on February 7, 2013 at 4:42pm

Thanks Jack!

I checked our 1099's from Anadarko, Mitsui and Ultra. Ultra was the only one that listed the deductions

Will be calling accountant to find out how to proceed will post his advice when I receive it sure dont want to pay taxes on money we did not get...

Maybe we all need accountants from Texas where they have been doing this longer than us!!

Permalink Reply by gary smith on February 7, 2013 at 5:03pm

sounds more like you need texas rangers.

Permalink Reply by Clinton44 on February 8, 2013 at 6:27am

Ok everybody,

Spoke with our financial wiz as some of our 1099 came through without deductions listed

He said claim only the net amount that you received save all check stubs/ production detail records in case you must prove deductions were taken to tax man. 

Permalink Reply by Jack Brindza on February 7, 2013 at 5:08pm

Just heard that some one has spoke to Statoil and they admitted that they made a bid error and will send out corrected 1099's within 10 days.  

Permalink Reply by gary smith on February 7, 2013 at 5:19pm
they heard the texas rangers were on the way. hahaha
Permalink Reply by Douglas A. Clark, Esq. on February 8, 2013 at 7:24am

THIS IS NOT TAX ADVICE AND YOU SHOULD SEEK A QUALIFIED ACCOUNTANT:

With that said, Accountants have advised me that you can take your 15% Depletion Allowance on the Gross Royalty Income provided in your 1099 AND you only have to pay taxes on the Net Royalty Income you actually receive.  

In other words, if you get $1,500 Gross Royalties on the 1099 but only received $1,000 Net Royalties, you get a depletion allowance of 15% on the entire $1,500 Gross but only pay taxes on the $1,000 Net.

Again, PLEASE SEEK A QUALIFIED ACCOUNTANT ON THIS ISSUE and do not take this as specific tax advice.  I offer this for informational purposes based upon what accounting professionals have stated.   Please seek a qualified accountant to consult on this issue.

Permalink Reply by Outback on February 8, 2013 at 7:41am

Statoil has included ALL royalties ever paid to the landowner, including January 2013. I received an email from them this morning stating that there was a "problem" with their 1099's. The are sorry for any inconvience and that they are working on it.

On another note it's necessary for the gas companies to report the gross royalty that you might correctly calculate the depletion allowance. You would then need to report the deductions on your Schedule E.

Permalink Reply by Clinton44 on February 8, 2013 at 9:22am

Thanks!! Doug and Outback

I have forwarded your advice to our financial guy to bring him up to speed, we were doing depletion allowance calculations for our estimated returns just want to make sure he is listing the deductions where they should be. 

Thanks again for your sound advise. Glad there are so many people on this forum willing to provide input! 

Permalink Reply by joe purcell on February 8, 2013 at 11:20am

i called statoil and they told me the one you get in the mail first is wrong and they are in the process of getting the correct ones out to all royalty owners

Permalink Reply by linuxnut on February 9, 2013 at 8:46am

Yes, I also heard Statoil had some 1099 reporting problems for some people. My royalty statements from Statoil did jive correctly with their 1099 misc. they had sent me.  Statoil only shows the gross amount paid to land owner. You must keep all of your royalty statements to prove any deductions. Just add up all of the deductions from all of the statements for 2012, and then on 1040 sched  E  you can show your gross minus your deductions = your net from Statoil.

Just as a footnote , I also add up all royalty statement net payables to me to all the deductions taken ,  to make sure the 1099 misc.(which is gross) equals statement gross.

I also noticed Chesapeakes 1099 misc. had the net value included on the back of theirs.

Also our friendly federal govt. allows a 15% depletion credit against your gross earnings (every year, forever) for all your gas royalty income. That is also deducted on 1040 sched E line 18, to give you a final net reportable  gas royalty income, which will go on line 17 of your 1040. I'm not an accountant, but always do my own taxes, and I have gleened all of this through research.... You surely can verify all this online....

Have a good day gentlemen....  

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