Frequently asked questions


Q. How are amounts reported on the forms 1099 determined?

a. Amounts reported on Forms 1099 include all checks issued to owners during the prior calendar year. Checks issued and subsequently voided during the same year will not be included.


Q. How are prior year missing and/or voided checks handled on the Form 1099?

a. IRS requires that all payments made in the calendar year be included on Form 1099. Forms will not be restated due to missing and voided checks, which were voided and reissued in a subsequent year(s) based on owners' requests.
Forms 1099 sent out and submitted for prior calendar years will not be restated and resubmitted to the IRS unless restatements relate to an internal error.


Q. When are Forms 1099 mailed to owners?

a. Form 1099 are mailed on or prior to January 31st, as required by IRS.


Q. When are Forms 1099 submitted to the IRS by Crestone?

a. Form 1099 are submitted to the IRS on or before March 31st.


Q. Do I have to use the amount reported on the Form 1099 when I prepare my tax return?

a. The 1099 form reflects information on file at the time the form is prepared. If ownership and/or other changes were not communicated to Crestone, you may have to make adjustments on your tax return to report accurate information.
Please consult you tax advisor.


Q. Why do I have income reported in Box 7 for the Form 1099?

a. Per IRS regulations, Box 7 includes monies received for oil and gas payments if you are a working interest owner.


Q. Why do I have income reported in Box 2 for the Form 1099?

a. Per IRS regulations, box 2 can include monies received for Shut In payments or can be described as royalty payments.


Q. Why do I have backup withholding Box 4?

a. Triggers can be:
  NO TIN OR SS NUMBER


Q. When are forms DR21W mailed to owners?

a. Form DR21W are mailed on or prior to March 1st


Q. How are prior year missing and/or voided checks handled on the Form DR21W?

a. State of Colorado requires that all payments made in the calendar year be included on Form DR21W. Please see instructions on Cash Basis or Accrual Basis located on the DR21W form. Forms will not be restated due to missing and void checks, which were voided and reissued in subsequent year(s) based on owners requests. Forms DR21W will not be resubmitted unless restatements relate to an internal error.